GAAP Refers to a Set of Standards Concerning Accounting Principles

question 307

True/False

GAAP refers to a set of standards concerning accounting principles that were established by the Financial Accounting Standards Board.

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Definitions:

Efficient Markets Hypothesis

The theory that all available information is already reflected in securities prices, implying that stocks always trade at their fair value.

Actual Capital Markets

Refers to live, operational markets where securities, debts, and equities are traded and capital is allocated in real time.

Market Efficiency

A theory stating that all available information is already reflected in asset prices, thus making it impossible to consistently achieve higher returns.