The Basic Purpose of Generally Accepted Accounting Principles Is To

Multiple Choice

The basic purpose of generally accepted accounting principles is to:

A) Minimize the possibility of a business becoming insolvent.
B) Provide a framework for financial reporting that is understood by both the preparers and the users of financial statements.
C) Ensure that financial statements include the type of information that is best suited to every type of business decision.
D) Eliminate the need for professional judgment in preparing financial statements.