Question

Generally accepted accounting principles ___________.

• A. Define accounting practice at a point in time
• B. Are similar in nature to the principles of chemistry or physics
• C. Are rarely changed
• D. Are not affected by changes in the way business operates

Answer 1

The correct option is A Define accounting practice at a point in time

GAAP (generally accepted accounting principles) is a collection of commonly-followed accounting rules and standards for financial reporting. The acronym is pronounced "gap." GAAP specifications include definitions of concepts and principles, as well as industry-specific rules.

These "principles" are not like the unchangeable laws of nature in chemistry or physics.

They encompass conventions, rules,and procedures, necessary to define accepted accounting practice at a particular time.