GAAP tries to ensure that accounting information is:

Question

Quizplus · Accepted Answer

GAAP stands for Generally Accepted Accounting Principles, which are a set of accounting standards and guidelines that companies must follow when creating financial statements. The purpose of GAAP is to ensure that accounting information is relevant (useful for decision-making), understandable (clear and concise), and reliable (accurate and unbiased). Therefore, choice B is the best answer. Choices A, C, and D are not completely accurate or comprehensive.

GAAP Tries to Ensure That Accounting Information Is