The basic principles of GAAP do not include:
A)The entity concept
B)Liquidation valuation
C)The matching principle
D)Revenue recognition

Question

Quizplus · Accepted Answer

Liquidation valuation is not a basic principle of GAAP. The other three choices are fundamental accounting principles that guide financial reporting. The entity concept relates to treating the business as a separate entity from its owners. The matching principle requires expenses to be recognized in the same period as the related revenue. Revenue recognition dictates when and how revenue is recorded.

The Basic Principles of GAAP Do Not Include