Accountants Follow Guidelines for Professional Measurement and Disclosure of Financial

question 85

Multiple Choice

Accountants follow guidelines for professional measurement and disclosure of financial information called:

• A)IASB.
• B)GAAP.
• C)FASB.
• D)SEC.

---

Definitions:

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles (GAAP) are a collection of commonly followed accounting standards and procedures for financial reporting.

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid, regardless of when transactions occur.

Supplies Expense

The cost incurred from using or consuming supplies within a business operation.

Accounting Period

A specific time period at the end of which an organization prepares financial statements, commonly a year, quarter, or month.