Question

The measurement rules applied in computing numbers on the financial statements are referred to as_______.

Answer 1

GAAP - GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

Step-by-step explanation:

The generally accepted accounting principles (GAAP) apply to a specific set of accounting rules, guidelines and practices provided by FASB. Publicly traded companies throughout the U.s must report their financial reports according to GAAP.

GAAP is a blend of statutory principles (set by government boards) and commonly accepted accounting knowledge documentation and monitoring practices. The GAAP works at enhancing the transparency, accuracy and interoperability of financial data correspondence.