Grace_Chap 11_Prudence Theory

The _____ theory states that a business must avoid overstating its assets and profits and understating its liabilities and losses. Thus, non-current assets are presented at net book value, i.e. cost less accumulated depreciation to avoid overstating the value of non-current assets.

The prudence theory states that a business must _____ _____ (2 words) its assets and profits and understating its liabilities and losses. Thus, non-current assets are presented at net book value, i.e. cost less accumulated depreciation to avoid overstating the value of non-current assets.

The prudence theory states that a business must avoid overstating its _____ _____ _____ (3 words) and understating its liabilities and losses. Thus, non-current assets are presented at net book value, i.e. cost less accumulated depreciation to avoid overstating the value of non-current assets.

The prudence theory states that a business must avoid overstating its assets and profits and _____ its liabilities and losses. Thus, non-current assets are presented at net book value, i.e. cost less accumulated depreciation to avoid overstating the value of non-current assets.

The prudence theory states that a business must avoid overstating its assets and profits and understating its _____ _____ _____ (3 words). Thus, non-current assets are presented at net book value, i.e. cost less accumulated depreciation to avoid overstating the value of non-current assets.

The prudence theory states that a business must avoid overstating its assets and profits and understating its liabilities and losses. Thus, non-current assets are presented at _____ _____ _____ (3 words), i.e. cost less accumulated depreciation to avoid overstating the value of non-current assets.

The prudence theory states that a business must avoid overstating its assets and profits and understating its liabilities and losses. Thus, non-current assets are presented at net book value, i.e. cost less accumulated depreciation to _____ _____ (2 words) the value of non-current assets.

The prudence theory states that a business must avoid overstating its assets and profits and understating its liabilities and losses. Thus, non-current assets are presented at net book value, i.e. cost less accumulated depreciation to avoid overstating the value of _____ _____ (2 words).