Asked by AGUSTINA RATNA DWIATI on Jun 28, 2024
Verified
The accounting standards that have been established so all businesses produce comparable financial statements are known as which of the following?
A) GAAP
B) FASB
C) GANTT
D) GAT
GAAP
Generally Accepted Accounting Principles; a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.
Accounting Standards
Formal guidelines and principles designed to improve the transparency and consistency of financial reporting and accounting practices.
Financial Statements
Financial statements are formal records of an entity's financial activities and position, including the balance sheet, income statement, and cash flow statement.
- Comprehend the application and importance of Generally Accepted Accounting Principles (GAAP).
Verified Answer
MR
Misty RameyJun 28, 2024
Final Answer :
A
Explanation :
GAAP stands for Generally Accepted Accounting Principles, which are a collection of commonly-followed accounting rules and standards for financial reporting. The purpose of GAAP is to ensure that financial statements are consistent and transparent, making it easier for investors, regulators, and other stakeholders to compare financial information across different companies.
Learning Objectives
- Comprehend the application and importance of Generally Accepted Accounting Principles (GAAP).