BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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FHA
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FOIA
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GAAP
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IRS
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Detailed explanation-1: -Are all companies required to follow GAAP? Not all companies need to follow GAAP. Only regulated and publicly traded businesses must adhere to GAAP.
Detailed explanation-2: -The correct option is B. Accrual basis of accounting is in accordance with Generally Accepted Accounting Principles (GAAP).
Detailed explanation-3: -The specifications of GAAP, which is the standard adopted by the U.S. Securities and Exchange Commission (SEC), include definitions of concepts and principles, as well as industry-specific rules. The purpose of GAAP is to ensure that financial reporting is transparent and consistent from one organization to another.
Detailed explanation-4: -GAAP covers such topics as revenue recognition, balance sheet classification, and materiality.