Generally accepted accounting principles
A)are accounting rules formulated by the Internal Revenue Service.
B)are sound in theory but rarely used in real life.
C)are accounting rules that are recognized as a general guide for financial reporting.
D)have eliminated all errors in accounting.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) are a set of accounting standards and procedures used as a general guide for financial reporting. They are not formulated by the IRS, are widely used in practice, and while they aim to minimize errors, they have not eliminated all errors in accounting.

Generally Accepted Accounting Principles