Which of the following is NOT standard of generally accepted accounting principles?
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A. B. C. D.D
The Generally Accepted Accounting Principles (GAAP) are a set of standard accounting principles, practices, and procedures established by the Financial Accounting Standards Board (FASB) in the United States. These principles provide a framework for financial reporting that ensures consistency, transparency, and comparability across all organizations.
Of the options presented, "Quality control" is NOT a standard of generally accepted accounting principles.
A) Conservatism is a principle of GAAP that suggests that when in doubt, accountants should choose the method that is least likely to overstate assets or income. This principle results in a more conservative estimate of financial position and performance.
B) Cost is a principle of GAAP that requires businesses to record assets at their original cost. This principle is based on the belief that the cost of an asset is a reliable indicator of its value.
C) Full disclosure is a principle of GAAP that requires businesses to disclose all relevant information that could affect the financial statements to stakeholders. This principle promotes transparency and helps ensure that financial statements are accurate and complete.
D) Quality control, on the other hand, is not a principle of GAAP. Quality control refers to the processes and procedures a company uses to ensure that its products or services meet specific quality standards. While quality control is important in accounting and auditing to ensure accurate financial reporting, it is not a standard principle of GAAP.
In summary, the correct answer is D - Quality control is not a standard of generally accepted accounting principles.