Generally accepted accounting principles are
A)Required to make financial statement information relevant and faithfully represented.
B)Only used by auditors.
C)Only used for internal reporting.
D)Not used in the real world.
E)Only used for reporting to Canada Revenue Agency.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) are a set of guidelines and standards designed to ensure that financial reporting is relevant and faithfully represented. These principles are used both by companies preparing financial statements for external reporting purposes and by auditors reviewing those statements. GAAP is not only used for internal reporting or for reporting to specific agencies such as the Canada Revenue Agency.

Generally Accepted Accounting Principles Are