Question

Select the correct answer.

Which accounting principle makes it easy to make comparisons in financial statements for two consecutive years because of uniformity in
currency?
PLS HELP

Answer 1

monetary unit

Answer 2

Generally Accepted Accounting Principles (GAAP)

Step-by-step explanation:

Generally Accepted Accounting Principles (GAAP) comprises guidelines, procedures, rules, and accounting standards developed for use when recording and reporting financial information. The Financial Accounting Standards Board (FASB) is responsible for developing and issuing the GAAP. Accountants working for public companies in the USA must follow GAAP while preparing financial statements.

By using GAAP, financial information gains uniformity across the country irrespective of the type of business. A comparison of financial data between companies and periods becomes possible.