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

Question

Quizplus · Accepted Answer

GAAP requires companies to report selected information about operating segments in the annual report. This is in accordance with the requirement for companies to provide information that is relevant to their investors and other users of financial statements. Reporting on operating segments provides information about the company's performance and risks associated with its operations.

Generally Accepted Accounting Principles GAAP Require Companies to