Which of the following action shall explain the prudence concept in the most appropriate way? a. An accountant has to account for expenses even if the exact amount payable is uncertain. b. In a situation of uncertainty, the accounting staff shall maintain a degree of caution while preparing accounts of an entity. c. An accountant should not account income until it is realized in cash d. An accountant can understate profit rather than overstating it
Which of the following action shall explain the prudence concept in the most appropriate way? a. An accountant has to account for expenses even if the exact amount payable is uncertain. b. In a situation of uncertainty, the accounting staff shall maintain a degree of caution while preparing accounts of an entity. c. An accountant should not account income until it is realized in cash d. An accountant can understate profit rather than overstating it
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle
Section: Chapter Questions
Problem 7CYBK
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Which of the following action shall explain the prudence concept in the most appropriate way?
a.
An accountant has to account for expenses even if the exact amount payable is uncertain.
b.
In a situation of uncertainty, the accounting staff shall maintain a degree of caution while preparing accounts of an entity.
c.
An accountant should not account income until it is realized in cash
d.
An accountant can understate profit rather than overstating it
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