1)Distinguish between the concepts of prudence and accrual with respect to their effects on financial
1)Distinguish between the concepts of prudence and accrual with respect to their effects on financial reporting
2) Fully explain the implication of the stock turnover ratio for a business' liquidity
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Prudence concept relates to adoption of such accounting policies and principles while accounting so that the assets and profits are not over stated and liabilities and expenses are not under reported.
Accrual concept relates to accruing the income and expenditure related to the period so that they are matched properly with respect to the reporting period.
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