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

Wyjaśnienie

The quote directly describes the prudence principle.

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

Wyjaśnienie

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