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.

---

Definitions:

Social Development

The progression by which individuals acquire the values, behaviors, and skills necessary to function effectively in society.

Peer Groups

A social group whose members have interests, social positions, and age in common.

Middle Childhood

This phase encompasses the period of development from approximately 6 to 12 years of age, where children experience significant growth in cognitive, social, and physical abilities.

Feel Comfortable

A state of physical or emotional ease, often marked by a lack of stress, pain, or social awkwardness.