In Germany, Prudence Is an Accounting Principle Established in Commercial

question 53

Multiple Choice

In Germany, prudence is an accounting principle established in commercial law.What does "prudence" mean in an accounting context?

• A)Reliability
• B)Comparability
• C)Conservatism
• D)Relevance

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Definitions:

Deed of Land

A legal document that represents the ownership of property and transfers the title from one party to another.

Statute of Frauds

A legal principle requiring certain contracts to be written and signed to be enforceable.

Executor

A person named in a will or appointed by a court to administer the estate of a deceased person.

Liquidated

The process of converting assets into cash, often referring to the disbanding of a company and selling off its assets.