New 55% Off on All Courses - Enroll Now! Click Here

    Question

    GAAP stands for?   

    A Global Accounts and Audit Principles Correct Answer Incorrect Answer
    B General Accounts and Audit Principles Correct Answer Incorrect Answer
    C Globally Accredited Accounting Principles Correct Answer Incorrect Answer
    D Generally Accepted Accounting Principles Correct Answer Incorrect Answer
    E General Accrual Accounting Practices Correct Answer Incorrect Answer

    Solution

    Generally accepted accounting principles (GAAP) are a common set of accounting principles, standards and procedures that companies must follow when they compile their financial statements. GAAP is a combination of authoritative standards (set by policy boards) and the commonly accepted ways of recording and reporting accounting information. GAAP improves the clarity of the communication of financial information.

    Practice Next