PRINCIPIUL PRUDENTEI – BAZA RATIONAMENTULUI
                     PROFESIONISTULUI CONTABIL /
               THE PRUDENCE PRINCIPLE – THE BASIS FOR
             REASONING OF THE PROFESSIONAL ACCOUNTANT

         Prof. univ. dr. Gheorghe Popescu – Academia de Studii Economice – Bucuresti

        Abstract: In order to em phasize the basic role of the prudence principle in the reasoning of
the professional accountant, the paper searches and provides arguments trying to respond at the
fallowing questions: can the prudence principle be used in: choosing the FIFO method; using the
depreciation – straight – line method with scrap value; cost capitalization; recognizing the profit in
the revenue account.
        Even though the prudence principal requires that the evaluation must avoid the super
evaluation of the assets and the under evaluation of the debts, which can be very easily
accomplished in theory, the application of this particular rule in uncertain conditions implicates
that the professional accountant must use its reasoning at maximum.
        The answers provided at the questions abov e, encountered at the most recent exam that
allows individuals to become auditors, were extremely interesting, being able to stress a significant
number of controversies, finally leading to total denial and even, in some cases, to arguments
without any proof.

       Keywords: prudence principle, professional accountant.

       JEL Codes: M41.