USFSP Honors Program Theses (Undergraduate)

First Advisor

Dr. Debra Sinclair

Publisher

University of South Florida St. Petersburg

Document Type

Thesis

Language

en_US

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.

Comments

A thesis submitted in partial fulfillment of the requirements of the University Honors Program, University of South Florida St. Petersburg.

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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