Generally Accepted Accounting Principles (GAAP)were (Are)established By

question 37

Multiple Choice

Generally accepted accounting principles (GAAP) were (are) established by:

• A)an Italian monk in 1494.
• B)the U.S.Congress and the SEC.
• C)the PCAOB.
• D)the FASB on an ongoing basis.

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Definitions:

Property, Plant, and Equipment

Tangible assets that are held for use in the production or supply of goods or services, rental to others, or administrative purposes and are expected to be used during more than one period.

Classified Balance Sheet

A balance sheet that organizes a company’s assets, liabilities, and equity into subcategories for clearer understanding.

Adjusted Trial Balance

A listing of all company accounts and their balances after adjustments, serving as the basis for financial statement preparation.

Return on Assets Ratio

A measure of how effectively a company uses its assets to generate profit, calculated as net income divided by total assets.