The Rules Adopted by the Accounting Profession as Guides in Measuring

question 164

Multiple Choice

The rules adopted by the accounting profession as guides in measuring, recording, and reporting the financial affairs and activities of a business are

• A) both broad and specific principles
• B) known as generally accepted accounting principles
• C) abbreviated as GAAP
• D) intended to make information in financial statements relevant and faithfully represented.
• E) All of these

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Definitions:

Unadjusted Trial Balance

A preliminary list of all accounts and their balances in the general ledger before any adjusting entries are made to prepare financial statements.

Financial Statements

The formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and cash flow statement.