Which one of the following answers explain the prudence and business entity concepts the best? Prudence - revenue and income should be anticipated; therefore any unearned income should be shown in the accounts | Business entity - Only those transactions which can be expressed in terms of money should be recorded for accounting. O Prudence - revenue and income should not be anticipated therefore any unearned income should not be shown in the accounts. | Business entity - The 'Business' and 'owner' are taken as two separate entities - Prudence - all known expenses and liabilities must be taken into account when preparing accounts, whether the amount is known with certainty or it has been estimated. I Business entity - Only those transactions which can be expressed in terms of money should be recorded for accounting. Prudence - income should be recognised when it is earned rather than when cash is received. | Business entity - when preparing accounts the company must assume that there is no intention or need to go into liquidation or to curtail significantly the current level of business operations