A business should not lay claim to any profit before it is earned. This is...
FINANCIAL
WAEC 2023
A business should not lay claim to any profit before it is earned. This is in accordance with the
- A. going concern concept
- B. prudence concept
- C. dual aspect concept
- D. consistency concept
Correct Answer: B. prudence concept
Explanation
Prudence also known as conservatism. This principles state that the accountant should not anticipate income and will normally take the figure that will understate rather than overstate the profit.
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *