Which principle requires anticipating potential losses but not unrealized gains in French accounting

Which principle requires anticipating potential losses but not unrealized gains in French accounting

Which principle requires anticipating potential losses but not unrealized gains in French accounting?

A. Matching principle

B. Prudence principle (Prudence)

C. Consistency principle

D. Materiality principle

Answer: B

Explanation: The Prudence principle (Principe de Prudence) is a core principle in French accounting. It requires accountants to recognize potential losses as soon as they are foreseeable, but not to recognize unrealized gains (gains that have not yet been realized through a transaction) to avoid overstating the company’s financial position.