Under the GAAP conservatism principle which of the following statements is true

A company should understate their income if they have an opportunity to do so

When a company has a choice regarding recording a transction or event, they should choose the alternative that has the most favorable impact on net income

A company should understate net income when filling out their IRS income tax forms

When a company has a choice regarding recording a transction or event, they should choose the alternative that has the least favorable impact on net income

A company should always record a transaction or event at historical cost because it will minimize the values on the balance sheet.