Question

Which of the following is the benefit of using GAAP while preparation of financial statements?

• A. Facilitates comparison of financial statements
• B. Adequate disclosures in the financial statements
• C. Eliminate confusing variations
• D. All of these

Answer 1

The correct option is D

All of these

Since GAAP (generally accepted accounting principles) is a collection of commonly followed accounting rules and standards for financial reporting, all of the above are the benefits of using GAAP while preparation of financial statements.