The disposition and tendency to preserve what is established; opposition to change; the habit of mind; or conduct, of a conservative.

A political philosophy characterized by trust in individual initiative, tradition, experience and time-tested institutions rather than human ingenuity for reshaping the world for the better from the top down. Conducive to spiritual degeneration when practiced apart from ethical systems which require attention to social responsibilities.

In the American context, an ideology that is respectful of traditional values and institutions, including private property, enterprise, and family. Generally favors liberty over equality.

or prudence - an accounting principle which states that where alternative accounting methods are possible, one understates rather than overstates profits.

The convention that mandates that, when faced with two equally acceptable alternatives, the accountant must choose the one less likely to overstate assets and income.

This accounting guideline states that if doubt exists between two acceptable alternatives (in other words the accountant needs to break a tie), the accountant should choose the alternative that will result in a lesser asset amount and/or a lesser profit. A classic example is inventory where the replacement cost is less than the actual cost. The accountant must decide whether to leave the inventory at cost or to reduce the inventory amount to its replacement cost. Conservatism directs the accountant to reduce the inventory to the lower amount (the replacement cost). This results in a lower asset amount and a debit to an income statement account, such as Loss from Reducing Inventory to LCM. To learn more, see the Explanation of Lower of Cost or Market (LCM). To Top

Constancy with time of a given physical property during a specific process.