Prudence concept tends to understate the profit . depreciation is a tool through which we record our losses , which means that our profit is declining .This means that depreciation is a supportive tool for reducing profit. Matching concept tends to record the expense to the revenue generated from the assets . Hence depreciation fulfils the requirements of both the concepts .
source : "Ultimate book of accountancy" Ans: Main concepts of accounting are (1) Business entity concept (2) Money Measurement concept (3) Cash and Accrual Concept (4) Prudence concept (5) Cost concept (6) Matching Concept For more detail.... see... "ULTIMATE BOOK OF ACCOUNTANCY" Published by vishvas publications ... vishvasbook@yahoo.com
deprecation is the example of prudence
Accruals and prudenceThe accruals concept requires future income (e.g. in relation to credit sales) to be accrued. The prudence concept dictates that caution should be exercised, so that if there is doubt about the subsequent receipt, no accrual should be made.Consistency and prudenceIf circumstances change, prudence may conflict with the consistency concept, which requires the same treatment year after year.In both situations, prudence must prevail.
list 5 advantages of prudence concept
Prudence is a theological virtue in which we are all committed to and have the ability to do what is right and judge what is good as Jesus Christ.
the fundamental principles of accounting are as follows:a. the going concern conceptb. the consistency conceptc. the separate valuation conceptd. accruals and matching concepte. the concept of prudence
Prudence in Tagalog is translated as "kahinhinan." It refers to the quality of being wise, careful, and practical in making decisions and judgments.
source : "Ultimate book of accountancy" Ans: Main concepts of accounting are (1) Business entity concept (2) Money Measurement concept (3) Cash and Accrual Concept (4) Prudence concept (5) Cost concept (6) Matching Concept For more detail.... see... "ULTIMATE BOOK OF ACCOUNTANCY" Published by vishvas publications ... vishvasbook@yahoo.com
Prudence Liew's birth name is Prudence Liew.
deprecation is the example of prudence
la prudence (fem.)
Prudence the name is spelled phonetically as ×¤×¨×•×“× ×¡ prudence as in "caution" is זהירות
Prudence Farrow's birth name is Prudence Anne Villiers Farrow.
She advised him to exercise prudence with his finances, urging him to save rather than spend impulsively.
Prudence Building was created in 1923.
Prudence Bushnell was born in 1946.
Prudence Liew is 5' 3".