UK Accounting Glossary
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.
behaviour that is careful and avoids risks:
The state of being careful in the way you make decisions or spend money so that you avoid unnecessary risks:
History and Etymology of prudence
Middle English, from Anglo-French, from the Latin term “prudentia”, an alteration of “providentia” (providence). The first known use of prudence was in the 14th century.
We need to exercise prudence in such matters of importance.
The firm was commended for its financial prudence.
Everyone agreed that panic wasn’t called for, however, prudence was.
She authors a personal-finance editorial that preaches fiscal prudence.
Prudence demands the conservation of as much of the current eco-system as possible.
Casinos acquire such massive profits partially because few of the people who visit them have the prudence to walk away whilst they’re still ahead.
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This glossary post was last updated: 23rd December 2018.