The Basic Purpose of Generally Accepted Accounting Principles Is To

question 39

Multiple Choice

The basic purpose of generally accepted accounting principles is to:

• A)Minimize the possibility of a business becoming insolvent.
• B)Provide a framework for financial reporting that is understood by both the preparers and the users of financial statements.
• C)Ensure that financial statements include the type of information that is best suited to every type of business decision.
• D)Eliminate the need for professional judgment in preparing financial statements.

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Definitions:

Recruiters

Professionals responsible for identifying, attracting, and hiring talent for job positions within organizations.

Human Capital

The collective skills, knowledge, and abilities of an organization's employees considered as an economic value.

Workforce Participants

are individuals who are actively engaged in the workforce, either as employees, self-employed individuals, or volunteers, contributing to the economic activity.

Global Economy

An interconnected marketplace without geographical limits, where goods, services, and labor are exchanged worldwide.