Generally Accepted Accounting Principles Are the Basic Assumptions, Concepts, and Guidelines

question 128

True/False

Generally accepted accounting principles are the basic assumptions, concepts, and guidelines for preparing financial statements.

---

Definitions:

Pre-acquisition Earnings

Earnings accumulated by a company prior to being acquired by another entity.

Retained Earnings

The portion of net income left over for a business after it has paid out dividends to its shareholders.

Acquisition Value

Acquisition Value is the total cost incurred to acquire an asset, including the purchase price and all related expenses.

Acquired Net Assets

The total assets purchased from a company during an acquisition minus the liabilities assumed in the process.