The absence of GAAP for corporations could lead to what situation? A : Companies engaging in price gauging

GAAP or Generally Accepted Accounting Practices are the standardised accounting protocals or norms designed by respective geographies to have the consistency in the reporting structures of the entities. Also, there is a global practice of IFRS (International Financial Reporting Standards) which streamline the entire gamut of accounting process to be on a same consistent platform across the globe.

In general, the GAAP is considered as an accounting discipline and is used to avoid any mis-reporting or avoiding the practise of companies to publish misleading financial statements.

Answer:

C :Companies misreporting accounting figures.