Which of the Following Is NOT True About Generally Accepted

question 60

Multiple Choice

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

• A) They are outlined in Statements of Financial Accounting Standards.
• B) In the United States, they are issued by the Financial Standards Accounting Board.
• C) They are stringent, giving firms little latitude in reporting financial situations.
• D) Two firms that both follow GAAP can still have significant differences in how they compute their financial outcomes.

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Definitions:

Negative Punishment

The removal of a desirable stimulus after a behavior, which decreases the likelihood of the behavior occurring again.

Positive Punishment

Adding an undesirable stimulus to decrease a behavior; for example, scolding a pet to stop it from engaging in unwanted behavior.

Frequency

The rate at which something occurs or is repeated over a particular period of time or in a given sample.

Misbehavior

Actions or conduct that are inappropriate, disruptive, or violate social norms or rules.