alleryStart learning →Which accounting principle supports providing for a likely contingent loss?
APrudence
BMateriality
CRealisation
DEntity
Answer & Solution
Correct answer: A. Prudence
If a loss is likely, prudence says to provide for it in the financial statements.
Keep practising AS 4 Contingencies and Events Occurring After the Balance Sheet Date
Browse all AS 4 Contingencies and Events Occurring After the Balance Sheet Date questions for CA Inter, or explore more Accounting topics.
Related questions
Contingencies in AS 4 are restricted to conditions existing at which date?Besides its nature, what must be given about a post-year-end event reported by the approviAn event unrelated to conditions at the balance sheet date generally leads to what?A post-year-end event gives further evidence of year-end conditions. What usually follows?Which events are covered as events after the balance sheet date?A contingent liability is matched by a claim on a third party. The provision considers whaLiabilities on policies issued by which enterprises are excluded from AS 4?Which item must be given when disclosing a contingency?