Question 18 2 points Financial statements prepared in accord

Question 18 2 points Financial statements prepared in accordance with generally accepted accounting pripe A provide investors and chyditors ail information necessary for investment and credit decisións OB are less comparable than financial infomation not prepared in accordance with generally accepted accounting principles C are primarily intended for internal use by managers D.are pimanily intended to provide information relevant to providers of financing

Solution

Answer is A.

The Principles of Generally accepted accounting principles, or GAAP for short, are the accounting rules used to prepare and standardize the reporting of financial statements, such as balance sheets, income statements and cashflow statements, for publicly traded companies and many private companies in the United States. GAAP-based income is measured so that the information provided on financial statements is useful to those making economic decisions about a company, such as potential investors and creditors.