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Generally Accepted Accounting Principles (GAAP) refers to:
AA single global accounting standard
BA common set of accepted accounting principles, standards and procedures
CTax laws of a particular country
DInternal management accounting policies
Answer & Solution
Correct answer: B. A common set of accepted accounting principles, standards and procedures
1. Step 1: Per Ch 1 of the ICAI study material, GAAP is "a common set of accepted accounting principles, standards, and procedures that business reporting entity must follow when it prepares and presents its financial statements".
2. Step 2: GAAP is NOT a single global standard — it includes both authoritative standards and commonly accepted practices.
3. Step 3: Hence (B) is correct.
_Source: ICAI BoS CA Inter Paper 1, Ch 1 "Introduction to Accounting Standards"_