Explain The Major Accounting Convention

The Major Accounting Conventions
Accounting conventions are standards or guidelines which regard the application of accounting rules. These rules have evolved over time in an attempt to deal with practical problems that are experienced by users of financial statements. The main accounting conventions that will discussed here are the materiality convention, prudence convention among several others.
Prudence
The prudence convention states that caution should be exercised when making professional judgements in accounting estimates. Prudence requires the accountant to exercise caution in their estimates so that income and or asset prices are not overstated and also that expenses are not underestimated.
There is a danger that management in an organisation