Understanding generally accepted accounting principles is not necessary when using and interpreting financial statements.

Question

Quizplus · Accepted Answer

Understanding generally accepted accounting principles (GAAP) is necessary when using and interpreting financial statements because GAAP provides a framework for consistent and accurate financial reporting. Without understanding GAAP, it is difficult to know if the financial statements are reliable and comparable to other companies' financial statements.

Understanding Generally Accepted Accounting Principles Is Not Necessary When Using