Question

Fill in the blank.

Q. Recognize all losses , anticipate no ____ .

Fast answer please guys ❤️​

Answer 1

profit is the answer I think.

Answer 2

Recognize all losses, and anticipate no profits.

• According to the Conservatism Principle, A firm should be prepared and accounted for in advance but profits should not be assumed or anticipated.
• A loss irrespective of fact whether they have occurred or not should be accounted and other hand profits shall not be recorded till the time they have been realized.
• As for example, If machinery has to be sold and the market price is already anticipated to be more than the book value but the profit cannot be recorded in advance.
• On the other hand, if a firm is expecting and loss in advance, for example, Provision for bad debts is an example of the same as the firm already prepares itself for the loss they may incur.

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