Final answer:
GAAP includes rules set by standard setters.
Step-by-step explanation:
GAAP, or Generally Accepted Accounting Principles, includes rules that are set by standard setters. These rules are established by various organizations, such as the Financial Accounting Standards Board (FASB) in the United States, and they provide a framework for preparing financial statements in accordance with accepted accounting principles.
For example, the FASB sets guidelines for revenue recognition, expense recognition, asset valuation, and other accounting principles that companies must follow when preparing their financial statements. These rules help ensure consistency, comparability, and reliability of financial information.
So, the statement is true. GAAP includes rules set by standard setters.