GAAP "rules" govern how
A)controlling activities are performed.
B)strategic plans should be designed.
C)a company evaluates its operational activities.
D)transactions are valued, recorded, and presented.

Question

Quizplus · Accepted Answer

GAAP governs how transactions are valued, recorded, and presented in a company's financial statements. It sets the standards and guidelines for accounting practices such as revenue recognition, depreciation, and inventory valuation. GAAP does not address controlling activities, strategic plans, or operational evaluations.

GAAP "Rules" Govern How