The GAAP aims to ________.
A) prohibit firms from documenting their internal financial controls and processes
B) give companies the freedom to determine the salaries of its employees
C) prevent firms from using internal auditors to audit operations
D) enable outsiders to make confident analyses and comparisons
E) provide the users with business intelligence to make informed decisions

Question

Quizplus · Accepted Answer

D) GAAP (generally accepted accounting principles), overseen in the United States by the Financial Accounting Standards Board (FASB), aims to give a fair and true picture of a company's financial position and enable outsiders to make confident analyses and comparisons.

The GAAP Aims to ________