Generally accepted accounting Principles:
A)Focus on the review of a situation.
B)Do not require financial statements.
C)Never change.
D)Intend to make information on the financial statements relevant,reliable,and comparable.
E)Oversees Security and Exchange Commission.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) intend to make information on the financial statements relevant, reliable, and comparable. This means that financial statements prepared under GAAP should provide information that is useful to stakeholders, such as investors and creditors, in making decisions. GAAP are not focused on reviewing a situation nor do they oversee the Securities and Exchange Commission. GAAP are also subject to change as they must adapt to new economic, legal, and business developments. Financial statements are a key product of GAAP as they provide stakeholders with a summary of a company's financial performance and position.

Generally Accepted Accounting Principles