Final answer:
US GAAP is indeed subject to change over time as it adapts to new economic conditions, business practices, and convergences with international standards, confirming the statement to be true.
Step-by-step explanation:
The statement that US GAAP is a guide to action that may change over time is true. US GAAP stands for United States Generally Accepted Accounting Principles, which are a collection of rules, standards, and conventions that guide how financial statements should be prepared and reported for companies in the United States. These principles are not static; they are subject to change as the Financial Accounting Standards Board (FASB) updates them to reflect new economic realities, business practices, and to provide clearer guidance for companies and accountants.
For example, changes have been made over time to how revenue recognition is handled, lease accounting, and financial instrument reporting. Moreover, the convergence project with International Financial Reporting Standards (IFRS) has also influenced changes in US GAAP. Therefore, anyone working within the field of accounting needs to stay informed about these changes and understand how they affect financial reporting.