Exercising a degree of caution in the case of judgements needed under the condition of uncertainity is the assumption of which of the following accounting concepts?
A. Matching concept
B. Timeliness concept
C. Accrual concept
D. Prudence concept
Answer: Option D
Solution(By Examveda Team)
Exercising a degree of caution in the case of judgements needed under the condition of uncertainity is the assumption of Prudence concept. Prudence Concept or Conservatism principle is a key accounting principle which makes sure that assets and income are not overstated and provision is made for all known expenses and losses whether the amount is known for certain or just an estimation.This Question Belongs to Commerce >> Accounting
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