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

The full form of GAAP is:
A. Generally Accepted Accounting Procedures
B. Generally Accepted Auditing Principles
C. Generally Accepted Accounting Principles
D. Global Accounting and Auditing Practices
Answer: Option C
Solution (By JKSSB Mock Tests)
GAAP stands for Generally Accepted Accounting Principles.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Earnings Per Share' (EPS) as per AS 20 is computed as:
A. Net profit before preference dividend / Equity shares
B. EBIT / Shares
C. Gross profit / Number of shares
D. Net profit / Number of equity shares outstanding

Correct Answer: Option D


Explanation:
Basic EPS = (Net profit - Preference dividend) / Weighted average equity shares.

Question #2
S1: Deferred revenue expenditure is a capital expenditure. S2: Deferred revenue expenditure is a revenue expenditure spread over multiple years. Which statement(s) is/are correct?
A. S1 only
B. Both S1 and S2
C. S2 only
D. Neither S1 nor S2

Correct Answer: Option C


Explanation:
Deferred revenue expenditure is essentially a revenue expenditure (like heavy advertising) whose benefit extends over multiple years, so it is written off over those years. It is not a capital expenditure. S1 is incorrect, S2 is correct.

Question #3
A and B share profits 3:2. They admit C with 1/5th share. C brings ₹30,000 as capital and ₹10,000 as goodwill. The total goodwill of the firm is:
A. ₹10,000
B. ₹50,000
C. ₹2,00,000
D. Cannot determine

Correct Answer: Option B


Explanation:
C's share of goodwill = 1/5 = ₹10,000. So total goodwill = 10,000 × 5/1 = ₹50,000.