If you record revenue, the conservatism approach in accounting is common. It helps when it comes to reporting requirements for revenues and expenses. Revenues and expenses need to get recorded during the same accounting period. Plus, there are certain guidelines and principles that you need to follow. Prudence Principle of Accounting FAQs You have already...Read More

Plus, there are certain guidelines and principles that you need to follow. Some companies only claim profits when they become verified and fully realized. Suppose an asset owned by an entity like inventory was bought for $120 but can now be bought for $50. Then the company must immediately write down the value of the...Read More