GAAP

GAAP refers to a set of standardized accounting rules, principles, and procedures used for preparing and presenting financial statements. These principles ensure consistency, accuracy, and transparency in financial reporting across organizations.

GAAP includes guidelines for recording transactions, recognizing revenue, valuing assets and liabilities, and presenting financial information. It helps ensure that financial statements provide a true and fair view of a company’s financial position.

The main objective of GAAP is to make financial information comparable and reliable for investors, regulators, and other stakeholders. By following GAAP, businesses can maintain credibility, comply with legal requirements, and support better financial decision-making.