The initials GAAP stand for:

• A. General Accounting Procedures
• B. Generally Accepted Plans
• C. Generally Accepted Accounting Principles
• D. Generally Accepted Accounting Practices

Answer: (C)

GAAP stands for Generally Accepted Accounting Principles. It refers to the framework of concepts and rules used to prepare and present financial statements in the United States. Each part of the phrase matters: “Generally” means broadly accepted, “Accepted” indicates authority by standard-setters, and “Principles” signals the fundamental concepts underlying the standards. That exact combination is why this is the formal name of the framework. The other options use terms like procedures, plans, or practices, which are not the official acronym for the accounting framework.