Accounting standards prescribed by generally accepted accounting principles (GAAP) are important because:
A) they make the financial statements of all firms standardized.
B) they allow one to examine a firm's performance with ease over a period of time.
C) they make it possible for management or analysts to compare a firm's performance with that of other competitors.
D) All of the above.

Question

Quizplus · Accepted Answer

Accounting standards prescribed by GAAP make financial statements standardized, allow easy examination of a firm's performance over time, and make it possible for management or analysts to compare a firm's performance with that of other competitors. Therefore, all of the above options are correct.

Accounting Standards Prescribed by Generally Accepted Accounting Principles (GAAP) Are