Question

he initials GAAP stand for a. Generally Accepted Accounting Principles b. Generally Accepted Accounting Practices c. General Accounting Procedures d. Generally Accepted Plans

Answer 1

Answer:

Correct option is (a)

Explanation:

GAAP is the abbreviation for Generally Accepted Accounting Principles. These are guiding principles that help in recording accounting transactions. These are developed over the course of time and includes comprehensive guidelines used by accountants over the years in preparing financial statements.

GAAP ensures reliability and comparability of financial statements.