Concept:The principle of recording profits only when they are reasonably certain is called prudence or conservatism.Explanation:A business should not claim or record profit before it is actually earned with reasonable certainty.This rule prevents overstating income and ensures that financial statements are not misleading.It requires recognising losses as soon as they are foreseen, but recognising profits only when realised.This cautious approach is known as the prudence concept.Answer:B. prudence concept