Question

Window dressing is prohibited due to________.

• A. Conservative Convention
• B. Convention of Disclosure
• C. Convention of Materiality
• D. Arrear of Book accounts

Answer 1

Answer: (B)

Convention of Disclosure

As per the convention of disclosure, accountant should show the correct information in the book of account. Same information should be disclosed by him. In window dressing, accountant or businessman changes the information in accounting records for getting benefits from outside parties. So, as per convention of disclosure, it should be prohibited.