Anticipating Losses and Omitting Potential Profits

A

The statement "Anticipate possible losses and omit potential profits" suggests a deliberate action of considering potential losses while disregarding potential gains. This approach can be associated with a concept called "asymmetrical accounting."

Asymmetrical accounting refers to an accounting practice that focuses more on recognizing and reporting potential losses or liabilities while downplaying or omitting potential gains or assets. It is a method that emphasizes a conservative approach to financial reporting, prioritizing the identification and disclosure of risks and uncertainties.

The rationale behind asymmetrical accounting is to avoid overstating financial performance and to ensure that financial statements reflect a more cautious and realistic view of the company's financial position. By anticipating possible losses, such as uncollectible receivables or inventory obsolescence, the company aims to provide a more accurate portrayal of its financial health and to avoid misleading stakeholders.

In contrast, symmetrical accounting would involve treating potential losses and potential profits equally, recognizing both aspects in financial reporting. This approach would present a balanced view of a company's financial position, reflecting both risks and opportunities.

The options C and D ("Playing accounting" and "Bearing accounting") do not accurately describe the practice described in the question. "Playing accounting" is not a recognized term or concept within accounting, and "Bearing accounting" does not relate to the concept of asymmetrical accounting.

Therefore, the most appropriate answer to the question is A. Asymmetrical accounting.