What is not the correct answer about Generally Accepted Accounting Principles (GAAP).

1. GAAP comprises a hierarchy of applicable guidance set forth in descending levels of authoritativeness.

2. Higher levels of GAAP overrule lower levels.

3. Financial reports prepared in conformity with GAAP are more informative and useful in decision making than financial reports that do not follow GAAP.

4. Every state and local governments must follow GAAP.

5. The users of GAAP include legislative