Define: Prudence

UK Accounting Glossary

Definition: Prudence

Quick Summary of 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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To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Prudence. Payroll & Accounting Heaven Ltd. September 15, 2019
Chicago Manual of Style (CMS):
Prudence. Payroll & Accounting Heaven Ltd. (accessed: September 15, 2019).
American Psychological Association (APA):
Prudence. Retrieved September 15, 2019, from website:

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