which of the following statements concerning the principle of accounting conservatism is true? group of answer choices according to the tax law principle of conservatism, taxpayers should deduct expenses and losses in the earliest reasonable year. according to the gaap principle of conservatism, financial statements should report expenses and losses in the earliest reasonable year. the gaap principle of conservatism tries to prevent the overstatement of book income and the understatement of taxable income. according to the tax law principle of conservatism, taxpayers should deduct expenses and losses in the same year as they are reported on the taxpayers' financial statements.