An accountant generally has an obligation to prepare statements for a publicly-traded corporation in "accordance with GAAP." What does this mean?

Question

Quizplus · Accepted Answer

GAAP stands for "Generally Accepted Accounting Principles," which are a set of guidelines and standards used to prepare and present financial statements. While GAAP is primarily used in the United States, many other countries have their own set of accounting standards. If a corporation is publicly-traded in multiple jurisdictions, an accountant may need to prepare statements in accordance with both GAAP and other applicable standards, such as International Financial Reporting Standards (IFRS). Therefore, option B is the most accurate statement.

An Accountant Generally Has an Obligation to Prepare Statements for a Publicly-Traded