The Major Reason for the Existence of Generally Accepted Accounting

question 51

Multiple Choice

The major reason for the existence of generally accepted accounting principles is to:

• A) force accountants to all act in the same way.
• B) increase business profits.
• C) improve the standard of accounting information for decision-making.
• D) make accountants legally liable for errors.

---

Definitions:

Sufficient Funds

Refers to having enough money in an account to cover checks or other withdrawal requests.

Federal Reserve Bank

One of the 12 regional banks that make up the Federal Reserve System, acting as the central banking system of the United States.

Business Days

Days of the week when business is typically conducted, usually Monday through Friday, excluding public holidays.

Local Account

An account that is specific to a particular geographical location or jurisdiction, often referring to banking or services limited to a local area.