The standards and rules that are recognized as a general guide for financial reporting are called __________.
A. generally accepted accounting principles
B. operating guidelines
C. generally accepted accounting standards
D. standards of financial reporting
The correct answer is A. generally accepted accounting principles (GAAP).
To arrive at this answer, we can break down the question and evaluate each option:
A. generally accepted accounting principles (GAAP): These are the standards and rules widely accepted and recognized as the general guide for financial reporting. They provide a framework for how financial statements should be prepared and presented.
B. operating guidelines: While operating guidelines may be relevant to financial reporting in some contexts, they do not specifically refer to the standards and rules recognized as a guide for financial reporting.
C. generally accepted accounting standards: This option is similar to option A, but it is not the correct term commonly used. The widely accepted term is "generally accepted accounting principles" (GAAP).
D. standards of financial reporting: This option is close to the correct answer but is not the commonly used term. The commonly used term is "generally accepted accounting principles" (GAAP).
Therefore, the correct answer is A. generally accepted accounting principles (GAAP).