The set of standards,assumptions,and concepts that form the "ground rules" for financial reporting in the United States is termed:
A)The conceptual framework.
B)Generally accepted accounting principles.
C)Statements of Financial Accounting Concepts.
D)American standards for certified public accountants.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) are the set of standards, assumptions, and concepts that form the "ground rules" for financial reporting in the United States. GAAP is recognized as authoritative by the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB), among other organizations. The conceptual framework (choice A) and Statements of Financial Accounting Concepts (choice C) are important components of GAAP, but they are not the entire set of standards. American Standards for Certified Public Accountants (choice D) refer specifically to the ethical and professional standards that certified public accountants must adhere to.

The Set of Standards,assumptions,and Concepts That Form the "Ground Rules