Asked by Daman Kalkat on May 17, 2024
Verified
Generally accepted accounting principles regulate how and what financial information is reported by businesses.
Financial Information
Data about a company's past, present, and future financial health and performance.
- Recognize the importance of external regulations and standards, such as the Sarbanes-Oxley Act and accounting principles established by the Financial Accounting Standards Board (FASB).
Verified Answer
AH
ashleigh hickmanMay 19, 2024
Final Answer :
True
Explanation :
Generally accepted accounting principles (GAAP) are a set of rules, guidelines, and conventions that companies use to prepare their financial statements according to a standard format. GAAP ensures that financial reporting is transparent, consistent, and reliable, providing investors and stakeholders with an accurate view of a company's financial position.
Learning Objectives
- Recognize the importance of external regulations and standards, such as the Sarbanes-Oxley Act and accounting principles established by the Financial Accounting Standards Board (FASB).
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