Which of the following action shall explain the prudence concept in the most appropriate way? a. An accountant has to account for expenses even if the exact amount payable is uncertain. b. In a situation of uncertainty, the accounting staff shall maintain a degree of caution while preparing accounts of an entity. c. An accountant should not account income until it is realized in cash d. An accountant can understate profit rather than overstating it
Which of the following action shall explain the prudence concept in the most appropriate way? a. An accountant has to account for expenses even if the exact amount payable is uncertain. b. In a situation of uncertainty, the accounting staff shall maintain a degree of caution while preparing accounts of an entity. c. An accountant should not account income until it is realized in cash d. An accountant can understate profit rather than overstating it
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 1MCQ: Which of the following statements is true? Under cash-basis accounting, revenues are recorded when a...
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Which of the following action shall explain the prudence concept in the most appropriate way?
a.
An accountant has to account for expenses even if the exact amount payable is uncertain.
b.
In a situation of uncertainty, the accounting staff shall maintain a degree of caution while preparing accounts of an entity.
c.
An accountant should not account income until it is realized in cash
d.
An accountant can understate profit rather than overstating it
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