Regarding Generally Accepted Accounting Principles (GAAP),which of the Following Statements

question 198

Multiple Choice

Regarding generally accepted accounting principles (GAAP) ,which of the following statements is incorrect?

• A) GAAP rests on a conceptual framework that identifies the objectives, characteristics, elements, and implementation of financial statements.
• B) The primary objective of financial reporting is to provide information useful for making investment and lending decisions.
• C) Relevant information is complete, neutral, and free from error.
• D) GAAP is currently formulated by the Financial Accounting Standards Board.

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Definitions:

Utility

A measure of satisfaction or pleasure derived from consuming products or services.

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, investments, and other income sources.

Coke

A carbonized material derived from coal used mainly in steel production, or a trademark for a popular carbonated soft drink.