GAAP stands for which of the following?

• A. Generally Accepted Accounting Principles
• B. General Accepted Accounting Principles
• C. Generally Accepted Financial Principles
• D. International Accounting Standards

Answer: (A)

GAAP stands for Generally Accepted Accounting Principles. It’s the set of rules and conventions used in the United States to prepare, present, and disclose financial statements so they’re consistent, reliable, and comparable across companies. The correct expansion uses “Generally” and “Accounting Principles,” which matches the established terminology for U.S. accounting standards. The other options misstate the terms or refer to international standards rather than GAAP.