Regarding generally accepted accounting principles (GAAP),which of the following statements is incorrect?
A) GAAP rests on a conceptual framework that identifies the objectives, characteristics, elements, and implementation of financial statements.
B) The primary objective of financial reporting is to provide information useful for making investment and lending decisions.
C) Relevant information is complete, neutral, and free from error.
D) GAAP is currently formulated by the Financial Accounting Standards Board.

Question

Quizplus · Accepted Answer

While relevance is a key characteristic of financial information under GAAP, it is not defined as being "complete, neutral, and free from error." Rather, information should be relevant, reliable, and comparable.

Regarding Generally Accepted Accounting Principles (GAAP),which of the Following Statements