Question: What is not the correct answer about Generally Accepted Accounting Principles (GAAP)? GAAP comprises a hierarchy of applicable guidance set forth in descending levels of

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

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

Higher levels of GAAP overrule lower levels.

The users of GAAP include legislative and oversight bodies, investors and creditors, and citizens.

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

Every state and local government must follow GAAP.

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