Generally accepted accounting principles are:
A) optional procedures for recording economic events.
B) mandatory rules applied to both financial and management accounting.
C) the rules of accounting, prescribed exclusively by Federal regulatory agencies.
D) standards of accounting, a material departure from which may result in a qualified opinion issued by an auditor.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) are standards and guidelines for accounting practices. A significant deviation from these principles in financial reporting can lead to an auditor issuing a qualified opinion, indicating that the financial statements may not fully comply with GAAP.

Generally Accepted Accounting Principles Are