Which of the following most closely describes the meaning of prudence, as the term is defined in the IASB’s
Framework for the Preparation and Presentation of Financial Statements?

A     The use of a degree of caution in making estimates required under conditions of uncertainty.
B     Ensuring that accounting records and financial statements are free from material error.
C     Understating assets and gains and overstating liabilities and losses.
D     Ensuring that financial statements comply with all accounting standards and legal requirements.

A

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