Question

Which of the following is not true of generally accepted accounting principles?

(A) GAAP does not have substantial authoritative support.
(B) GAAP is influenced by pronouncements of the SEC and IRS.
(C) GAAP includes detailed practices and procedures as well as broad guidelines of general application.
(D) GAAP changes over time as the nature of the business environment changes.

Answer 1

Answer:

(A) GAAP does not have substantial authoritative support.

Explanation:

Choices B to C are true about GAAP.

Now, Choice A is not true since  GAAP also includes detailed procedures and practices that provide a standard and not only broad guidelines of general application and this will imply that GAAP has a substantial authoritative support.

Also it is called "Generally Accepted Accounting Principles" for this reason.