Dear experts Plz explain prudence or conservatism principle with example
Dear Student,
According to prudence / conservatism principle, all the future losses must be anticipated and would be profits must be ignored. Due to this concept Closing stock is valued at cost price or market price , whichever is lower.
Regards
According to prudence / conservatism principle, all the future losses must be anticipated and would be profits must be ignored. Due to this concept Closing stock is valued at cost price or market price , whichever is lower.
Regards