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) are a set of guidelines and standards that aim to make financial information on the statements relevant, reliable, and comparable. They provide a framework for preparing financial statements that can be understood and analyzed by investors, creditors, and other stakeholders. GAAP get updated from time to time, so they are not static and can change. The Security and Exchange Commission (SEC) does not oversee GAAP, but they require companies to follow GAAP when submitting financial statements.