Accounting for IGCSE & O level - Advanced Principles (Section 7 - No. 14)

Which principle does the statement: 'Profits should not be overstated by ignoring reasonable losses and incomes should not be anticipated before it is earned', relate to?

Matching principle

Prudence principle

Realization principle

Consistency principle

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The quote directly describes the prudence principle.

Accounting for IGCSE & O level - Advanced Principles (Section 7 - No. 14)

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