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The policy of “anticipate no profit and provide for all possible losses” arises due to convention of 
  • a)
    Consistency 
  • b)
    Disclosure
  • c)
    Conservation 
  • d)
    Matching 
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
The policy of “anticipate no profit and provide for all possible...
Concept of conservation states that the accountant should not anticipate income and should provide for all possible losses.
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The policy of “anticipate no profit and provide for all possible...
An organization or government refers to a set of principles, guidelines, or rules that govern the actions, decisions, and behaviors of the organization or government. Policies are often created to achieve specific objectives or to address specific issues or problems.

Policies can cover a wide range of areas, including but not limited to:

1. Human resources: Policies related to hiring, training, performance evaluation, employee benefits, and workplace conduct.
2. Financial management: Policies related to budgeting, expenditure control, accounting practices, and financial reporting.
3. Information technology: Policies related to the use of technology resources, data security, internet and email usage, and software licensing.
4. Health and safety: Policies related to workplace safety procedures, emergency response protocols, and employee wellness programs.
5. Environmental sustainability: Policies related to resource conservation, waste management, pollution prevention, and sustainable practices.
6. Diversity and inclusion: Policies promoting equal opportunities, preventing discrimination, and fostering inclusivity in the workplace.
7. Ethics and compliance: Policies governing ethical conduct, conflict of interest, bribery and corruption prevention, and compliance with laws and regulations.

Policies are typically documented and communicated to all relevant stakeholders within the organization or government. These policies serve as a framework for decision-making and ensure consistency, fairness, and accountability in the organization's actions. They also help in managing risks, promoting organizational values, and maintaining legal compliance.
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The policy of “anticipate no profit and provide for all possible losses” arises due to convention ofa)Consistencyb)Disclosurec)Conservationd)MatchingCorrect answer is option 'C'. Can you explain this answer?
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