The body of rules and procedures that guide the measurement and communication of financial accounting information in the United States is known as:
A)Standards of Professional Compliance (SPC).
B)Generally Accepted Accounting Principles (GAAP).
C)Generally Accepted Auditing Standards (GAAS).
D)Rules of Financial Reporting (RFR).

Question

Quizplus · Accepted Answer

Generally Accepted Accounting Principles (GAAP) is the set of accounting principles, standards, and procedures that guide the measurement and communication of financial accounting information in the United States. It provides a common language for businesses to communicate financial information to investors, creditors, and other stakeholders. The other options, Standards of Professional Compliance (SPC), Generally Accepted Auditing Standards (GAAS), and Rules of Financial Reporting (RFR) are not the official body of rules and procedures for financial accounting in the United States.

The Body of Rules and Procedures That Guide the Measurement