GAAP filters the data needed for a complete and faithful picture in the financial reports.

Question

Quizplus · Accepted Answer

GAAP (Generally Accepted Accounting Principles) provide guidelines for what information should be included in financial reports, how that information should be presented, and how it should be measured. By doing so, GAAP ensures that financial reports provide a complete and accurate picture of a company's financial health. Therefore, it can be stated that GAAP filters the data needed for a complete and faithful picture in the financial reports.

GAAP Filters the Data Needed for a Complete and Faithful