Generally Accepted Accounting Principles

question 47

Multiple Choice

Generally accepted accounting principles

• A) are accounting adaptations based on the laws of economic science.
• B) derive their credibility and authority from legal rulings and court precedents.
• C) derive their credibility and authority from the federal government through the financial reporting section of the SEC.
• D) derive their credibility and authority from general recognition and acceptance by the accounting profession.

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Definitions:

Hydrochloric Acid

A strong, corrosive acid primarily found in the stomach, where it aids in digestion by breaking down foods and killing bacteria.

Sucrose

Disaccharide composed of glucose and fructose; table sugar.

Salt

A mineral compound that is composed mainly of sodium chloride, which is essential for life in general.

Water

A tasteless, odorless, and colorless chemical substance composed of hydrogen and oxygen, essential for most forms of life on Earth.