Generally Accepted Accounting Principles (GAAP) require companies to report
A)selected information about operating segments in the annual report.
B)financial statements using a cash basis.
C)information based on responsibility centers.
D)information in a segment margin format.

Question

Quizplus · Accepted Answer

GAAP requires companies to report selected information about operating segments in the annual report. This is typically done using a disclosure approach, where companies provide information on their operations in different segments, such as geographic regions or product lines. This information can help stakeholders better understand a company's performance and potential risks and opportunities. GAAP does not require companies to report financial statements using a cash basis, information based on responsibility centers, or information in a segment margin format.

Generally Accepted Accounting Principles (GAAP) Require Companies to Report