The rules followed by accountants when preparing financial statements are referred to as ______.
A) Generally Accepted Accounting Practices (GAAP)
B) Financial Accounting Standards Board (FASB)
C) the accounting process
D) the accounting system

Question

Quizplus · Accepted Answer

Generally Accepted Accounting Practices (GAAP) are a set of rules and standards that have been developed over time to ensure consistency and accuracy in financial reporting. These practices are widely recognized and followed by accountants in the preparation of financial statements. Option B, Financial Accounting Standards Board (FASB), is a private organization that sets accounting standards in the US. Options C and D are too broad and do not specifically refer to the rules followed in financial statement preparation.

The Rules Followed by Accountants When Preparing Financial Statements Are