zyquariahill04
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Which of the following statements describes GAAP?
A. GAAP standards are written and regulated by the government.
B. It is legally required that all companies meet GAAP standards.
C. Companies that meet GAAP standards usually use cash basis accounting.
D. GAAP recommends accrual basis accounting.

Respuesta :

taniyaaa20
The answer might be c

The statement that describes GAAP is that GAAP recommends accrual basis accounting.

  • Generally accepted accounting principles refers to the standards and accounting rules that are used for financial reporting.

  • The four main principles of GAAP include consistency, objectivity, materiality and prudence.

  • It should also be noted that Generally accepted accounting principles make use of the accrual basis accounting because sales are recorded at the time that they occur. This is vital in providing a better insight into the affairs and the performance of a company.

In conclusion, the correct option is D.

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