USF St. Petersburg campus Honors Program Theses (Undergraduate)
First Advisor
Dr. Debra Sinclair
Publisher
University of South Florida St. Petersburg
Document Type
Thesis
Date Available
June 2015
Publication Date
2015
Date Issued
April 2015
Abstract
The accounting principle of conservatism has its roots with bankers and debt financing. Bankers have urged businesses to underestimate earnings and overestimate expenses in order for the investors to make safer decisions in the future. Conservatism was relatively practical during the rudimentary beginnings of business. However, due to changes in corporate finance and new users of financial statements, conservatism has no place in financial accounting. Undoubtedly judgments and estimates must be made, but conservatism is no longer an accounting principle and the most accurate figure possible should be used with no bias in either direction.
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Recommended Citation
Garrison, Matthew R., "Conservatism in Accounting" (2015). USF St. Petersburg campus Honors Program Theses (Undergraduate).
https://digitalcommons.usf.edu/honorstheses/178
Comments
A thesis submitted in partial fulfillment of the requirements of the University Honors Program, University of South Florida St. Petersburg.