The full form of GAAP is: MCQ with Answer and Explanation

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The full form of GAAP is:

A. Global Accounting and Auditing Practices

B. Generally Accepted Accounting Procedures

C. Generally Accepted Auditing Principles

D. Generally Accepted Accounting Principles

Answer: Option D

Solution (By JKExamLibrary)

GAAP stands for Generally Accepted Accounting Principles.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error

While preparing a Bank Reconciliation Statement, a cheque deposited but not yet cleared is:

A. Deducted from the bank statement balance

B. Added to the bank statement balance

C. Deducted from the cash book balance

D. Added to the cash book balance

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Correct Answer: Option B

Explanation:
When starting from bank statement (pass book) balance, a deposit in transit must be added because it's not yet reflected in the bank statement.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2 Report Error

Net Profit Ratio is calculated on:

A. Net sales

B. Capital

C. Gross sales

D. Total assets

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Correct Answer: Option A

Explanation:
Net profit ratio = (Net profit / Net sales) * 100.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3 Report Error

A company's quick ratio is 1:1, current assets ₹2,00,000, inventory ₹40,000. Current liabilities are:

A. ₹1,60,000

B. ₹1,00,000

C. ₹40,000

D. ₹2,00,000

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Correct Answer: Option A

Explanation:
Quick assets = Current assets - Inventory = 2,00,000 - 40,000 = 1,60,000. Quick ratio = QA / CL = 1:1, so CL = ₹1,60,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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