Generally accepted accounting principles (GAAP)are measurement rules for
A) managerial accounting.
B) financial accounting.
C) tax accounting.
D) determining the market rate of return on a company's stock.

Question

Quizplus · Accepted Answer

GAAP are a set of rules and standards used in financial accounting to ensure that financial statements are consistent, accurate, and comparable. They are not used in managerial accounting or tax accounting. While financial accounting may be used in determining the market rate of return on a company's stock, GAAP are specifically focused on financial reporting rather than market analysis. Therefore, the best answer is B.

Generally Accepted Accounting Principles (GAAP)are Measurement Rules for