Generally Accepted Accounting Principles

question 55

Multiple Choice

Generally accepted accounting principles

• A)are accounting rules formulated by the Internal Revenue Service.
• B)are sound in theory but rarely used in real life.
• C)are accounting rules that are recognized as a general guide for financial reporting.
• D)have eliminated all errors in accounting.

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Definitions:

Compassion

A deep awareness of and sympathy for another's suffering, coupled with the desire to alleviate it.

Emotional Turmoil

A state of great disturbance, confusion, or uncertainty, typically relating to one's feelings or emotions.

Adversity

Difficulties or misfortunes that one may encounter in life.

Galatea Effect

The phenomenon by which individuals improve their performance in response to their own self-expectations or belief in their ability to succeed.