Please choose the most appropriate answer for each sentence.
  • 1

    Generally Accepted Accounting Principles are a set of accounting ..... approved by the professional accounting industry.

  • 2

    GAAP are a combination of ..... rules set by policy boards and the commonly accepted ways of recording and reporting financial information.

  • 3

    They can become accepted either as a result of due ..... or as a result of long term practice.

  • 4

    Accountants cannot express the opinion that financial statements are "in conformity with generally accepted accounting principles" if such information includes any ..... from these principles.

  • 5

    After the Stock Market ..... of 1929, the American Institute of Accountants introduced five broad principles of accounting which have won fairly general acceptance.

  • 6

    It is relatively unimportant to investors what reporting method is used by a company, so long as they are assured that it is followed ..... every year.

  • 7

    In 1934, the U.S. Congress created the Securities and ..... Commission (SEC), giving it the authority to prescribe the methods used in preparing financial statements.

  • 8

    In 1938, Congress permitted companies to use a new ..... method, lifo, for income tax purposes.

  • 9

    In 1939, the AIA recommended the phrasing, "present fairly in conformity with generally accepted accounting principles" in the standard form of the ..... report.

  • 10

    The P & L monograph of 1940 promulgated the "..... principle", which places primary emphasis on the correspondence of costs with the revenues that they produce.

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