The initials GAAP stand for
A) General Accounting Procedures
B) Generally Accepted Plans
C) Generally Accepted Accounting Principles
D) Generally Accepted Accounting Practices

Question

Quizplus · Accepted Answer

GAAP stands for Generally Accepted Accounting Principles, which are a set of guidelines and standards that companies must follow when preparing their financial statements in order to ensure consistency, transparency, and accuracy. These principles are established by the Financial Accounting Standards Board (FASB) in the United States and are used by companies around the world. Choices A and D are incorrect because "procedures" and "practices" are not the correct terms to describe these principles, and choice B is incorrect because there are no "plans" involved in GAAP.

The Initials GAAP Stand for