Generally Accepted Accounting Principles, or GAAP, Are the Rules and Procedures

question 140

True/False

Generally accepted accounting principles, or GAAP, are the rules and procedures established by the Financial Accounting Standards Board, or the FASB.

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Definitions:

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the operation.

Premium

An amount paid for an insurance policy or the difference above a bond's issue price or its face value in the market.

Real Estate Investment Trust

A company that owns, and in most cases operates, income-producing real estate, offering investors a way to invest in such properties without actually buying them.

Equity Trust

A type of investment trust that holds equities or stocks in various companies as its primary investments.