Which of the Following Statements Is True of Generally Accepted

question 30

Multiple Choice

Which of the following statements is true of Generally Accepted Accounting Principles (GAAP) ?

• A)They are used by auditors as a guide,but only for non-audit services.
• B)They are accepted and applied by accounting firms globally.
• C)They cannot be modified once initially established by the American Institute of Certified Public Accountants.
• D)They establish rules for how corporations and accounting firms prepare financial statements.

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Definitions:

Rent Escalation Clause

A provision in a lease agreement that allows the landlord to increase the rent at predefined intervals or based on certain criteria.

Yearly Rent Increase

A contractual or statutory increment in the amount payable for renting a property or space that occurs on an annual basis.

Absolute Right

A legal right that is unconditional and not subject to limitations or exceptions.

Lease Expired

The conclusion of a lease agreement due to reaching its end date, typically resulting in the lessee needing to vacate the property or negotiate a new lease.