Accounting Standards Prescribed by Generally Accepted Accounting Principles (GAAP) Are

question 40

Multiple Choice

Accounting standards prescribed by generally accepted accounting principles (GAAP) are important because:

• A) they make the financial statements of all firms standardized.
• B) they allow one to examine a firm's performance with ease over a period of time.
• C) they make it possible for management or analysts to compare a firm's performance with that of other competitors.
• D) All of the above.

---

Definitions:

Semiannually

Semiannually refers to an occurrence that happens twice a year, typically at six-month intervals.

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures.

Annual Coupon

The annual interest payment received by bondholders, expressed as a percentage of the bond's face value.

Par Value

The face value of a bond or stock, as designated by the issuing company, which may not reflect the market value.