The concept that states that a business should not lay claim to any profits before it is earned with reasonable certainty is?

A. consistency concept
B. prudence concept
C. accrual concept
D. going concern concept

Correct Answer: Option C

C. accrual concept

Explanation

Accrual concept is the most fundamental principle of accounting which requires recording revenues when they are earned and not when they are received in cash, and recording expenses when they are incurred and not when they are paid.