Which of the Following Is Not True About Generally Accepted

question 92

Multiple Choice

Which of the following is not true about generally accepted accounting principles (GAAP) ?

• A) GAAP provide specific guidelines as to how to account for specific events impacting the financial performance of the firm.
• B) The scrupulous application GAAP accounting rules ensures consistency in comparing one firm's financial performance to another.
• C) It is customary for definitive agreements of purchase and sale to require that a target company represent that its financial books are kept in accordance with GAAP.
• D) GAAP guarantees that a firm's financial books are accurate.
• E) Differences between how a firm records actual financial transactions and how they should be recorded based on GAAP may indicate fraud or mismanagement.

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Definitions:

Critical Behaviours

Actions or patterns of actions that significantly impact the effectiveness or performance in specific contexts or roles.

Performance Management

The process of ensuring that organizational goals are consistently being met in an effective and efficient manner through the management of employee performance.

Employee Satisfaction

The level of contentment employees feel towards their jobs, including aspects such as work environment, company culture, and remuneration.

Peer Appraisals

The evaluation of an employee's performance by their coworkers as part of a performance management system.