The principle of conservatism in accounting emphasizes:

The principle of conservatism in accounting emphasizes the importance of recognizing potential losses promptly while being cautious in recording profits. This approach ensures that financial statements do not overstate the financial position of a company. By recording losses as soon as they are anticipated and deferring the recognition of profits until they are assured, conservatism helps maintain a more prudent and cautious view of a business’s financial health. This principle protects stakeholders by providing a more realistic picture of the company’s economic situation, which is particularly important in times of uncertainty.

In contrast, maximizing expected profits can lead to overestimation of a company's performance and financial health, which is not aligned with conservative accounting practices. Overstating asset values is also contrary to the principle, as it would misrepresent the company’s assets and lead to financial statements that do not faithfully represent its actual value. Accrual accounting methods, while important in presenting financial information, do not specifically align with the conservative approach since they focus on matching revenues and expenses rather than prioritizing caution in profit recognition.