Chapter 1 LearnSmart Flashcards
1
Q
Identify the uses of generally accepted accounting principles (GAAP).
A
- Auditors need to be sure financial statements are prepared in accordance with GAAP.
- Companies use GAAP when preparing financial statements.
2
Q
Profit is also known as…
A
- net income
- a measure of performance
3
Q
Common forms of business organization include…
A
- corporation
- partnership
- sole proprietorship
