The rules adopted by the accounting profession as guides in measuring, recording, and reporting the financial affairs and activities of a business are:
A)Known as generally accepted accounting principles.
B)Abbreviated as GAAP.
C)Intended to make information in financial statements relevant and faithfully represented.
D)Both broad and specific principles.
E)All of these answers are correct.

Question

Quizplus · Accepted Answer

All of the choices are correct. Generally accepted accounting principles (GAAP) are a set of rules and guidelines that are intended to make information in financial statements relevant and faithfully represented. They include both broad principles and specific rules to provide consistency in financial reporting.

The Rules Adopted by the Accounting Profession as Guides in Measuring