Generally accepted accounting principles
A)are advisory guidelines for management.
B)are only applicable to balance sheets.
C)are to be followed in the preparation of financial statements.
D)can never be deviated from.
E)are uniform world-wide.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) are a set of guidelines that all accountants must follow when preparing financial statements, such as the balance sheet, income statement, and statement of cash flows. GAAP provides a standardized framework and ensures consistency in financial reporting across companies. While GAAP is not mandatory, most companies follow these principles to ensure their financial statements are accurate and reliable.

Generally Accepted Accounting Principles