The Conceptual Framework recommends when applying prudence Question 7 Answer a. more persuasive evidence to support the recognition of liabilities or expenses. b. more persuasive evidence to support the recognition of income c. the exercise of prudence does not imply a need for asymmetry d. more persuasive evidence to support the recognition of assets. Which of the following is a fundamental assumption of Capture Theory? Question 8 Select one: a. The market is an efficient market. b. Regulation is costly. c. People rationally advance their own self-interest. d. Economic markets are fragile