PRUDENCE CONCEPT Definition

Bookmark and Share

PRUDENCE CONCEPT, otherwise known as conservatism, says that whenever there are alternative procedures or values, the accountant will choose the one that results in a lower profit, a lower asset value and a higher liability value.

Learn new Accounting Terms

LAG TIME is the period of time between two closely related events, phenomena, etc., as between stimulus and response or between cause and effect: a time-lag between the declaration of war and full war production.

STATEMENT OF CASH FLOWS measures the flow of money in and out of a business. One of four financial statements found in the annual report, it categorizes a companys cash receipts and disbursements for a given fiscal year by three major activities: operations, investments and financing.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.