When it comes to the treatment of depreciation and valuation of inventory, generally accepted accounting principles .
A)provide almost no guidance to accountants
B)allow accountants to choose among different methods for depreciation and for the valuation of inventory
C)require accountants to use only one specific method of depreciation, but permit several methods of inventory valuation
D)require accountants to use one specific method for valuing inventory, but permit several methods for depreciating fixed assets

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) provide guidelines for accounting practices, but they do not prescribe specific methods or techniques. Therefore, accountants can choose among different methods for depreciation and for the valuation of inventory as long as these methods are consistent with GAAP principles and applied consistently from one period to another.

When It Comes to the Treatment of Depreciation and Valuation