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Home > QFINANCE Dictionary > Definition of prudence

Definition of

prudence

Treasury Management

principle of not anticipating profits in accounts the principle that revenue and profits are not anticipated but are included in the profit and loss account only when realized in the form either of cash or of other assets, the ultimate cash realization of which can be assessed with reasonable certainty. Provision is made for all known liabilities (expenses and losses) whether the amount of these is known with certainty or is a best estimate in the light of the information available.

Related definitions of "prudence"

prudence - Related Articles
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  • The Responsibilities of Trustees

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    and other regulations that govern the activities of the trust; act with integrity, and avoid any personal conflicts of interest or misuse of funds or assets; ensure that the charity is and will remain solvent (duty of prudence); use charitable funds and assets reasonably, and only in furtherance

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Definitions of ’prudence’ and meaning of ’prudence’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’prudence’ and other financial terms with our online QFINANCE Financial Dictionary.

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