Generally accepted accounting principles (GAAP) is a set of accounting standards that is used in the:
A) preparation of financial statements.
B) preparation of a company's tax returns.
C) audit of a company's financial books.
D) preparation of organizational budgets.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) is a set of accounting standards used in the preparation of financial statements. GAAP ensures the consistency, comparability, and accuracy of financial information provided to stakeholders. GAAP does not govern the preparation of company tax returns, audit of financial books, or the preparation of organizational budgets.

Generally Accepted Accounting Principles (GAAP) Is a Set of Accounting