Which of the following can be affected by GAAP?
A)Legal ability to issue bonds.
B)Ability to balance the budget.
C)Amount reported as employee pension plan contributions.
D)Claims and judgments settled.

Question

Quizplus · Accepted Answer

GAAP (Generally Accepted Accounting Principles) affects the way financial statements are prepared and presented, including the amount reported as employee pension plan contributions. However, legal ability to issue bonds, ability to balance the budget, and claims and judgments settled are not directly affected by GAAP.

Which of the Following Can Be Affected by GAAP