Question

explain any four limitations of GAAP​

Answer 1

Answer:

GAAP accounting provides management with a lot of tools in presenting the companies financial position. Such treatments for depreciation, deferred taxes, and amortization for R&D to name a few can be altered to present a smoothed picture of a company. The reality is companies do not operate this way.

Explanation:

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Answer 2

Limitations of using GAAP

The generally accepted accounting principles are not globally recognized as the standard for preparing financial reports. This can make using GAAP challenging for organizations that are international or are becoming more globalized.