Get premium membership and access questions with answers, video lessons as well as revision papers.

Distinguish between Accrual concept and Prudence concept

      

Distinguish between Accrual concept and Prudence concept.

  

Answers


Benjamin
Distinguish between Accrual concept and Prudence concept

Accrual concept states the revenues and costs are accrued and recognized as they are earned or incurred(and not as money is received or paid) and recorded in financial statement on the period on which they incur while Prudence concept states that uncertainties inevitable surrounds many transactions and revenues and profits should not be unanticipated but recognized only when they are are received in form of cash or other assets which can be treated as cash.




Kalis answered the question on March 23, 2018 at 07:51


Next:  Explain the following concepts a).Depreciationb) Amortizationc) Depletion
Previous: Discuss the mandates carried out by the Ministry of Health in Kenya

View More Accounting Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions