Generally accepted accounting principles
A) are accounting adaptations based on the laws of economic science.
B) derive their credibility and authority from legal rulings and court precedents.
C) derive their credibility and authority from the federal government through the financial reporting section of the SEC.
D) derive their credibility and authority from general recognition and acceptance by the accounting profession.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) derive their credibility and authority from general recognition and acceptance by the accounting profession. They are not based on economic science or derived from legal rulings, court precedents, or the federal government.

Generally Accepted Accounting Principles