Generally Accepted Accounting Principles

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Generally Accepted Accounting Principles

• Generally Accepted Accounting Principles (GAAP)
  are a widely recognized set of accounting
  standards, principles, and procedures used in the
  United States.

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Generally Accepted Accounting Principles

• GAAP is a set of accounting principles,
  standards, and procedures used primarily in the
  United States. They are established by the
  Financial Accounting Standards Board (FASB) and
  provide the foundation for financial reporting in
  various industries. GAAP aims to standardize
  accounting practices, making financial statements
  more comparable and reliable for investors,
  creditors, and other stakeholders.

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GAAP requires businesses to adhere to accrual
basis accounting, where transactions are recorded
when they occur, not when cash is exchanged. It
emphasizes the importance of full disclosure,
requiring companies to provide comprehensive
information in financial statements, footnotes,
and supplementary reports.
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By following GAAP, companies can enhance
transparency and credibility, enabling
stakeholders to make informed decisions based on
accurate and standardized financial information.
However, it's worth noting that GAAP is specific
to the United States, and other countries may
follow different accounting principles, such as
International Financial Reporting Standards
(IFRS).
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GAAP requires businesses to adhere to accrual
basis accounting, where transactions are recorded
when they occur, not when cash is exchanged. It
emphasizes the importance of full disclosure,
requiring companies to provide comprehensive
information in financial statements, footnotes,
and supplementary reports.
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