Question

What are generally accepted accounting principles? A. The set of commonly used accounting standards in the U.S. B. The set of commonly used accounting standards worldwide C. The set of standards an individual company comes up with on its own D. The set of standards for proofreading a financial statement

Answer 1

Answer:

A. The set of commonly used accounting standards in the U.S.

Explanation:

Generally Accepted Accounting Principles (GAAP) can be defined as the set of commonly used accounting standards in the U.S.

This ultimately implies that, the United States of America, Generally Accepted Accounting Principles (GAAP) is the accounting principles, procedures and standard issued by the Financial Accounting Standards Board (FASB) and adopted by the United States of America, Securities and Exchange Commission (SEC).

Hence, when accountants prepare and compile financial statements for public firms, it must be in line with United States of America, Generally Accepted Accounting Principles (GAAP).

The U.S GAAP is issued by the Financial Accounting Standards Board (FASB) and adopted by the U.S. Securities and Exchange Commission (SEC).