Generally Accepted Accounting Principles Are

question 122

Multiple Choice

Generally accepted accounting principles are

• A)income tax regulations of the Internal Revenue Service.
• B)standards that indicate how to report economic events.
• C)theories that are based on the physical laws of the universe.
• D)principles that have been proven correct by academic researchers.

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Definitions:

Negotiation

A strategic discussion that resolves an issue in a way that both parties find acceptable, often used in business to finalize deals, terms, and prices.

Investment Turnover

A metric assessing how effectively a firm turns asset investments into revenue.

Profit Margin

A financial ratio that shows what percentage of sales has turned into profits, essentially capturing the level of profitability of a company.

Return on Investment

A measure of the gain or loss generated on an investment relative to the amount of money invested.