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Question

Which of the following is not principle of communication?

A
Principle of clarity
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B
Principle of integraty
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C
Principle of prudence
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D
Principle of strategic use of informal organization
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Solution

The correct option is C Principle of prudence
The prudence concept, also known as the conservatism principle, is an accounting principle that requires an accountant to record liabilities and expenses as soon as they occur, but revenues only when they are assured or realized.

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