The accounting concept of prudence dictates that the accounting principle used should be the one least likely to overstate assets and income.

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The accounting concept of prudence requires that a cautious approach is taken when preparing financial statements, and the accounting principle used should be the one least likely to overstate assets and income. This is to ensure that financial statements are not misleading and reflect the company's true financial position.

The Accounting Concept of Prudence Dictates That the Accounting Principle