Generally accepted accounting principles are intended to assist accountants in preparing financial statements that:
A)Are relevant,verifiable,comparable,and understandable.
B)Show the business to be both solvent and profitable.
C)Comply with all income tax rules and regulations.
D)Are ideally suited to the specific needs of each user of the financial statements.

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) are designed to ensure that financial statements are relevant, verifiable, comparable, and understandable to users of the statements. These principles are not primarily aimed at demonstrating solvency or profitability or compliance with tax regulations, although they can indirectly affect these factors. Furthermore, GAAP are intended to provide a standardized approach to financial reporting, rather than tailoring statements to specific users' needs.

Generally Accepted Accounting Principles Are Intended to Assist Accountants in Preparing