The common set of standards and procedures by which audited ﬁnancial statements are prepared is known as:
A) The matching principle.
B) The cash ﬂow identity.
C) Generally Accepted Accounting Principles (GAAP).
D) The Freedom of Information Act (FOIA).
E) The 1993 Omnibus Budget Reconciliation Act.

Question

Quizplus · Accepted Answer

Generally Accepted Accounting Principles (GAAP) are a common set of standards and procedures that govern how audited financial statements are prepared. They ensure consistency and comparability in financial reporting of organizations. Options A, B, D, and E are not relevant to the question.

The Common Set of Standards and Procedures by Which Audited