Which of the following is a requirement for an accounting principle to be called "generally accepted"?
A) An authoritative accounting rule-making body has established it in an official pronouncement.
B) The principle has been accepted as appropriate because of its universal application.
C) An authoritative accounting rule-making body has established it and it has been accepted because of its universal application.
D) None of the answer choices are correct.

Question

Quizplus · Accepted Answer

A requirement for an accounting principle to be called "generally accepted" is that an authoritative accounting rule-making body has established it and it has been accepted because of its universal application. Simply being accepted as appropriate does not necessarily make it "generally accepted". Similarly, an authoritative pronouncement alone is not sufficient if it is not universally accepted. Therefore, choice C is the best answer.

Which of the Following Is a Requirement for an Accounting