Asked by Bryce Bloomquist on May 02, 2024
Verified
GAAP filters the data needed for a complete and faithful picture in the financial reports.
GAAP
Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting that companies in the U.S. must adhere to.
Financial Reports
Documents that present a company's financial performance and position, typically including the balance sheet, income statement, and cash flow statement.
- Realize the necessity for vigilance regarding accounting distortions and their impact on financial analysis.
Verified Answer
MM
Madison McguirtMay 05, 2024
Final Answer :
True
Explanation :
GAAP (Generally Accepted Accounting Principles) provide guidelines for what information should be included in financial reports, how that information should be presented, and how it should be measured. By doing so, GAAP ensures that financial reports provide a complete and accurate picture of a company's financial health. Therefore, it can be stated that GAAP filters the data needed for a complete and faithful picture in the financial reports.
Learning Objectives
- Realize the necessity for vigilance regarding accounting distortions and their impact on financial analysis.
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