Accounting for IGCSE & O level - Advanced Principles (Section 8 - No. 30)
Which accounting principle would best guide the decision of whether to write down the value of an asset due to market decline?
Materiality
Prudence
Consistency
Realization
ব্যাখ্যা
The prudence principle encourages the recognition of losses (writing down the asset's value) when they are likely.