GAAP has established a universal chart of accounts that is applicable to all businesses in the United States.

Question

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While GAAP (Generally Accepted Accounting Principles) provides guidance on how financial statements should be prepared and presented, it does not establish a universal chart of accounts that is applicable to all businesses in the United States. Businesses have the flexibility to create their own chart of accounts based on their specific needs and industry standards.

GAAP Has Established a Universal Chart of Accounts That Is