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