What is the underlying concept that support the immediate recognition of an estimated loss?

The correct answer is D. Prudence.

Prudence is the concept that requires accountants to be conservative in their estimates and to avoid overstating assets or profits. This concept is supported by the immediate recognition of an estimated loss, which means that a loss should be recorded in the financial statements as soon as it is probable that it will occur, even if the amount of the loss is not known with certainty.

The other options are not correct.

• Substance over form is the concept that requires accountants to record transactions based on their economic substance, rather than their legal form.
• Consistency is the concept that requires accountants to use the same accounting methods from period to period, unless there is a good reason to change.
• Matching is the concept that requires accountants to match expenses with the revenues that they generate.

I hope this helps! Let me know if you have any other questions.