Generally accepted accounting principles
A) are fundamental truths or axioms that can be derived from laws of nature.
B) derive their authority from legal court proceedings.
C) derive their credibility and authority from general recognition and acceptance by the accounting profession.
D) have been specified in detail in the FASB conceptual framework.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) derive their credibility and authority from general recognition and acceptance by the accounting profession. They are not fundamental truths, do not derive their authority from legal court proceedings, and while the FASB conceptual framework does provide guidance, it does not specify GAAP in detail.

Generally Accepted Accounting Principles