Question

Which of the following is not true of accounting principles? a.A new accounting principle can be adopted with stockholders' approval. b.Following GAAP allows accounting information users to compare one company to another. c.The Financial Accounting Standards Board (FASB) has primary responsibility for developing accounting principles. d.Financial accountants follow generally accepted accounting principles (GAAP).

Answer 1

Option A

A new accounting principle can be adopted with stockholders' approval  is not true of accounting principles

Explanation:

Accounting principles are the dictates and guidelines that firms must comprehend when describing financial data. The Financial Accounting Standards Board (FASB) publishes a regulated collection of accounting principles in the U.S. applied to as generally accepted accounting principles (GAAP). GAAP strives to develop the accuracy, flexibility, and comparability of the presentation of financial information.

Since accounting principles vary beyond the world, investors should practice discretion when associating the financial statements of organizations from various countries. Accounting principles help dictate the world of accounting according to prevailing dictates and guidelines.