Question

Generally accepted accounting principles are procedures and guidelines to be followed in the accounting/reporting process.

True / False.

Answer 1

Answer: TRUE

Explanation: US GAAP refers to the set of accounting principles and procedures that the accountants must need to follow while preparing the financial statements like balance sheet and income statement.

These rules are made for better presentation and comparison purpose. These standards help the users of financial statements to have better understanding.

Thus, from the above we can conclude that the given statement is true.