With the accounting principle of prudence how do some businesses run outside of the conservative nature that we see under this accounting principle? How do the businesses take the chances to make them a leader in the industry they are in? As controversial as he can be take Elon Musk for instance? How do the accountants work with him and the level of risk he seems to portray?

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The accounting principle of prudence also known as conservatism requires accountants to exercise caution when preparing financial statements by recogn... View the full answer