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:

Liability Accounts

Accounts on a company's balance sheet that represent amounts owed to creditors, including loans, accounts payable, and other financial obligations.

Utilities Expense

Costs incurred for essential services such as electricity, water, gas, and sewage treatment in the operation of a business.

Equity

The residual interest in the assets of an entity after deducting liabilities, representing ownership interest in the company.

Accounts Payable

Liabilities owed by a business to its suppliers or creditors for goods or services received but not yet paid for.