Correct Answer:
Generally Accepted Accounting Principles (GAAP)
Explanation:
The rules and standards that accountants follow to prepare, present, and report financial statements are called Generally Accepted Accounting Principles (GAAP) in the United States. These principles provide a framework to ensure consistency, reliability, and transparency in financial reporting across companies and industries.
Why Readers Can Trust This Answer:
GAAP is a widely recognized and established set of accounting standards used by companies in the U.S. for preparing financial statements. These principles help ensure that financial statements are accurate, comparable, and consistent, which is essential for investors, creditors, and other stakeholders to make informed decisions.
