Which of the Following Statements About Generally Accepted Accounting Principles

question 4

Multiple Choice

Which of the following statements about Generally Accepted Accounting Principles (GAAP) is NOT true?

• A) GAAP is a set of rule-based accounting standards established by the Financial Accounting Standards Board (FASB).
• B) GAAP sets out the standards, conventions, and rules that accountants must follow when preparing audited financial statements.
• C) GAAP is complex, providing more than 150 "pronouncements" as to how to account for different types of transactions.
• D) All of the statements above are true.

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Definitions:

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