Question: Does prudence concept allow a business to build substantially higher reserves or provisions than that are actually required? A. Yes B . No C. O

Does prudence concept allow a business to build substantially higher reserves or provisions than that are actually required?


A. Yes 

B. No

C. O To some extent

D. It depends on the type of business

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The concept of prudence in accounting suggests be... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

A payment stream consists of three payments: $2,500 due today,$3,000 due 100 days from today, and $3,500 due 240 days from today.What single payment, 80 days from today, is economically equivalentto...

Q:

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Q:

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Q:

1. Referencing the State of Kansas contract, you will find this is an IDIQ contract. Which other contract type could have been used for this contract? What are the pro and cons of the contract type...

Q:

Does anyone know where this article come from? I wanna cite it as a resource!! Thanks! 41 Auditing Insurance Companies 41.1 OVERVIEW OF THE INDUSTRY (a) Structure of the Industry, (b) Reinsurance,...

Q:

Does anyone know where this article come from? I wanna cite it as a resource!! Thanks! 41 Auditing Insurance Companies 41.1 OVERVIEW OF THE INDUSTRY (a) Structure of the Industry, (b) Reinsurance,...

Q:

Does anyone know where this article come from? I wanna cite it as a resource!! Thanks! 41 Auditing Insurance Companies 41.1 OVERVIEW OF THE INDUSTRY (a) Structure of the Industry, (b) Reinsurance,...

Q:

1.Do you agree with the authors that a code of ethics should do more than establish minimum acceptable standards?Why or why not? 2.Describe the five cardinal virtues of professional accountants that...

Q:

Accounting Concept 1.The historical cost of conversion The reason for using the convention Assets and expenses are recorded in ledger accounts at the actual amounts expended on these items because...

Q:

Hello, I need some assistance with this project. I have everything completed except the third and fourth question (located in the instruction project document. 3.)You are a security analyst...

Q:

Define and Implement the Price Adjustment Strategies in current Pakistan market. Apply each strategy with 3 examples along with product picture.

Q:

Which of the following is NOT a relevant cash flow and thus should not be reflected in the analysis of a capital budgeting project? A. Changes in net working capital. B. Shipping and installation...

Q:

Question 5 ( 1 point ) Correlation q , is a measure similar to the standard deviation, but more precise is usually negative for a portfollow with two securities ranges between - 1 and 1

Q:

4. Solve each of the following systems by using Cramer's rule. 6 - a. 2x + 5y = -1

Q:

3. For each (b, b2, b3) E R, show that the following system has a unique solution. x1 + 2x3 -3x1 + 4x2 + 6x3 = b2 -x1 2x2 + 3x3 = b3

Q:

2. Show that if a + 3, then the following system has a unique solution for (b1, b2) E R. x y = b1 ax 3y = b2

Q:

Solve each of the following systems using the inverse matrix method. 1 + 22 + 0 d. 2x1 + 5x2 + 3x3 = 1 Xi + 8x3 = -1

Q:

78Multiple Choice2.5 pointsIn the multiplex industry, Vibrant Movies Inc. is an upscale multiplex that focuses on superior customer experience. The firm charges prem and services. Global Cine Inc.,...

Q:

In 2012, Lou has a salary of $54,000 from her job. She also has interest income of $1,700. Lou is single and has no dependents. During the year, Lou sold silver coins held as an investment for a...

Q:

Marty is a sales consultant. Marty incurs the following expenses related to entertainment of his clients in 2012: Dues to a country club......................................................$4,500...

Q:

Explain the statement, the terms prior and posterior, when applied to prob abilities, are relative terms, relative to a given sample. Is it possible for a set of probabilities to be both prior and...

Q:

14. Does the all-or-none law apply to dendrites? Why or why not?

Q:

5. Which chemicals cross the blood-brain barrier passively?