Concept:The prudence concept means not recording profits before they are realised, but recording losses as soon as they are foreseen.Explanation:Prudence demands that anticipated losses are fully provided for in the books.However, profits are recognised only when they are actually earned and realised.This prevents overstating income and assets, and understating expenses and liabilities.Therefore, the concept specifically requires that losses should be anticipated.Answer:B. loss should be anticipated