What is the main goal of GAAP?
A)To help ensure that financial decisions are made in a professional and ethical manner.
B)To establish standards that help to prevent and detect fraudulent acts by management.
C)To ensure that the financial information produced by companies is useful to present and potential investors and other parties in making decisions.
D)To oversee the stock exchanges and financial reporting by public companies in the United States.

Question

Quizplus · Accepted Answer

Generally Accepted Accounting Principles (GAAP)are rules of financial accounting created by the Financial Accounting Standards Board for use in the United States.The main goal of GAAP is to ensure companies produce financial information that is useful to existing and potential investors,lenders,and other creditors in making decisions about providing resources to the companies.

What Is the Main Goal of GAAP