GAAP (Generally Accepted Accounting Principles)requires the Use of Accrual Basis

question 47

True/False

GAAP (Generally Accepted Accounting Principles)requires the use of accrual basis of accounting for external financial reporting purposes.
BT: Knowledge

---

Definitions:

Invested Assets

Resources or funds committed to ventures with the expectation of generating income or profit.

Investment Center

A business segment or unit within an organization that is responsible for its own revenues, expenses, and investments.

Department Manager

An individual responsible for overseeing the operations, budget, and personnel of a specific department within a company.

Revenues

The total income generated by a company from its business activities, such as the sale of goods or provision of services, before any expenses are deducted.