Which fundamental accounting concept stipulates that revenues and profits are not anticipated,but recognized only when realized as cash?

Question

Quizplus · Accepted Answer

The prudence concept in accounting means that revenue and profits should not be anticipated. It emphasizes recognizing revenues and profits only when they are realized, usually in the form of cash or other assets, to avoid overestimating the financial position of a business.

Which Fundamental Accounting Concept Stipulates That Revenues and Profits Are