The Accounting Standards That Have Been Established So All Businesses

question 25

Multiple Choice

The accounting standards that have been established so all businesses produce comparable financial statements are known as which of the following?

• A) GAAP
• B) FASB
• C) GANTT
• D) GAT

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Definitions:

Debit

An entry recorded on the left side of an accounting ledger that increases an asset or expense account, or decreases equity, liability, or revenue accounts.

Credit

An accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

Internal Report

Documents generated within an organization for the purpose of informing internal stakeholders about business performance and operations.

Debit Balances

Financial account balances resulting from total debits exceeding total credits, common in asset and expense accounts.