Practice Quiz

CPA Accountant Review Questions

Category - Accounting

Start a Study Session Sign up for Question of the Day

GAAP refers to:

  1. General accounting assistance program
  2. Generally accepted accounting principles
  3. Generally acceptable account procedures
  4. The theory that accounting and the general public look at financial statements differently
Explanation

Answer: B - GAAP refers to generally accepted accounting principles. In the United States, GAAP is set by FASB-the Financial Accounting Standards Board.

Key Takeaway: Generally accepted accounting principles are the commonly-followed rules and standards that govern preparation, presentation, and reporting of financials in the accounting process. GAAP not only contains general commonly followed accounting rules, but industry-specific standards, as well.

Next
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz