Define: Prudence

A degree of caution in the exercise of the judgements needed in making the estimates required under conditions of uncertainty, such that gains and assets are not overstated and losses and liabilities are not understated.

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Definitions for Prudence are sourced/syndicated from:

• A Dictionary of Economics (Oxford Quick Reference)
• BusinessDictionary.com
• Oxford Dictionary Of Accounting
• Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.