How can a business comply with the accounting principle of prudence?

assets | losses
---
| ---
avoid overstating | avoid overstating
avoid overstating | avoid understating
avoid understating | avoid overstating
avoid understating | avoid understating

Question

How can a business comply with the accounting principle of prudence?

assets | losses
---
| ---
avoid overstating | avoid overstating
avoid overstating | avoid understating
avoid understating | avoid overstating
avoid understating | avoid understating

Oracle Prep · Accepted Answer

The correct answer is B: avoid overstating | avoid understating

How can a business comply with the accounting principle of prudence? assets | losses --- | --- avoid overstating | avoid overstating avoid overstating | avoid understating avoid understating | avoid overstating avoid understating | avoid understating

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