In the Phrase "Generally Accepted Accounting Principles," the Words Generally

question 88

Multiple Choice

In the phrase "generally accepted accounting principles," the words generally accepted mean that the principles:

• A)Have been adopted by Congress or approved by the voters in a general election.
• B)Are acceptable to the Internal Revenue Service.
• C)Are understood and observed by all the participants in the financial reporting process.
• D)Have been approved by a majority of the members of the Financial Accounting Standards Board.

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Definitions:

Punch Card

A piece of stiff paper that can be used to contain digital data represented by the presence or absence of holes in predefined positions.

Retention Program

A set of activities or strategies designed by a business to increase the likelihood of a customer continuing to use their service or purchase their products.

Affordable Method

A budgeting technique where the cost of an action or project is determined based on what is financially feasible.

Principal Accounting Method

The main system a business uses to maintain its financial records and prepare financial statements, such as accrual or cash basis accounting.