What has the accounting profession adopted to guide the practice of financial accounting in order to provide external shareholders with relevant,reliable,consistent,and comparable financial information?
A)formal accounting rules and procedures (FARP)
B)standardized accounting procedures (SAP)
C)generally accepted accounting principles (GAAP)
D)general accounting rules for financial statements (GARFS)

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) are a set of formal rules, standards, and guidelines that the accounting profession has adopted to provide financial statement users with the relevant, reliable, consistent, and comparable financial information. These principles are established by various standard-setting organizations, including the Financial Accounting Standards Board (FASB) in the United States. GAAP helps ensure that financial statements are prepared in a consistent manner that can be easily understood by investors and other stakeholders. A is incorrect because there is no such thing as formal accounting rules and procedures. B and D are incorrect because there are no such things as standardized accounting procedures or general accounting rules for financial statements.

What Has the Accounting Profession Adopted to Guide the Practice