Final answer:
GAAP governs external financial reporting, not the accounting methods used for internal reports, which is why the statement is false.
Step-by-step explanation:
The statement is False. Accounting methods for internal reporting purposes are not specifically governed by Generally Accepted Accounting Principles (GAAP).
GAAP is designed to ensure uniformity and transparency in financial reporting for external stakeholders, such as investors and creditors. However, when it comes to internal reporting, companies have more flexibility in the methods they use, as this information is used for internal decision-making processes.
While some companies may choose to apply GAAP for internal purposes as well, it is not a requirement as it is for external financial reporting.