What is the common set of standards widely accepted in accounting?

The correct answer is indeed the set of standards known as Generally Accepted Accounting Principles (GAAP). GAAP consists of guidelines and rules that provide a framework for financial reporting and accounting practices. These principles ensure consistency, reliability, and comparability in financial statements, which is crucial for stakeholders who rely on this information for decision-making, such as investors, regulators, and management.

GAAP encompasses various standards that have been developed over time, establishing a baseline for how financial transactions should be recorded and reported. This uniformity helps maintain trust in financial reporting and supports transparency in the marketplace. Utilizing GAAP helps prevent misrepresentation of finances and ensures that all entities prepare their financial statements in a similar manner.

In contrast, the other options do not represent a widely accepted set of accounting standards. For instance, the term "Generally accepted accounting standards" does not specifically refer to a recognized framework like GAAP. Meanwhile, "A/P minus A/R" refers to accounts payable and accounts receivable, which are components of financial management and not standards themselves. The Securities and Exchange Commission (SEC) is a regulatory body that oversees securities transactions, but it does not establish accounting standards directly. Instead, the SEC relies on GAAP as the framework for financial reporting among publicly traded