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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 .
What else can I help you with?
What is an example of prudence?
deprecation is the example of prudence
What are the accounting principles that must be obserb in a accounting?
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
Does accounting concepts conflict?
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.
Advantages of prudence concept in financial accounting?
list 5 advantages of prudence concept
What is the prudence principle?
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.
Fundamental principles of accounting?
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
What is the birth name of Prudence Liew?
Prudence Liew's birth name is Prudence Liew.
What is an example of prudence?
deprecation is the example of prudence
What is the prudence in french?
la prudence (fem.)
How do you translate prudence to Hebrew?
Prudence the name is spelled phonetically as ×¤×¨×•×“× ×¡ prudence as in "caution" is זהירות
What are the accounting principles that must be obserb in a accounting?
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
What is the birth name of Prudence Farrow?
Prudence Farrow's birth name is Prudence Anne Villiers Farrow.
When was Prudence Building created?
Prudence Building was created in 1923.
When was Prudence Bushnell born?
Prudence Bushnell was born in 1946.
How tall is Prudence Zdravkovic?
Prudence Zdravkovic is 5' 6".
How tall is Prudence Hyman?
Prudence Hyman is 5' 4".
How tall is Prudence Liew?
Prudence Liew is 5' 3".
