Identify the statement below that is not correct regarding generally accepted accounting principles (GAAP).
A)GAAP is used to ensure that financial statements are meaningful and useful.
B)Sole proprietorships are not required to use GAAP because there is only a single owner.
C)GAAP allows the financial statements of different companies to be compared and meaningful conclusions drawn from the comparison.
D)Using generally accepting accounting principles (GAAP)allows companies to compare its own statements from period to period.

Question

Quizplus · Accepted Answer

This statement is not correct because all companies, including sole proprietorships, are required to use GAAP in order to ensure consistency and comparability in financial statements.

Identify the Statement Below That Is Not Correct Regarding Generally