The accounting standards and concepts used in the preparation of financial statements are called:
A)Certified principles of accounting (CPA).
B)Generally accepted accounting principles (GAAP).
C)Federal accounting standards and bylaws (FASB).
D)Standards enforcing consistency (SEC).

Question

Quizplus · Accepted Answer

Generally accepted accounting principles (GAAP) are the set of accounting standards and concepts used in the preparation of financial statements. CPA (Choice A) refers to a professional designation for accountants, FASB (Choice C) is a nonprofit organization that sets accounting standards in the US, and SEC (Choice D) is a government agency that regulates securities markets. However, GAAP is the universally recognized set of accounting principles used in financial reporting.

The Accounting Standards and Concepts Used in the Preparation of Financial