What is gaap?

User Avatar

Wiki User

βˆ™ 2008-06-12 11:13:46

Best Answer

Generally Accepted Accounting Principles Generally Accepted Accounting Principles (GAAP) is the standard framework of guidelines for financial accounting. It includes the standards, conventions, and rules Accountants follow in recording and summarizing transactions, and in the preparation of financial statements. One key aspect of GAAP is an emphasis of "general" as a conceptual realization of variables in method. Far from suggesting that all accounting exercises employ the same method and generate the same results, GAAP accommodates variation in applied accounting methods as long as the methods generally adhere to this set of principles, which are more broad than specific. Pursuant to the foregoing, not only therefore does this provide for variation in method, the natural conclusion is GAAP creates an environment in which financial reporting results can vary depending on purpose. One company in one fiscal year can produce different reports, all completed within GAAP, for different audiences or different purposes, and all these reports can be considered correct.

User Avatar

Wiki User

βˆ™ 2008-06-12 11:13:46
This answer is:
User Avatar
Study guides

What is the Gold Standard

What is Standard and Poors

What were greenbacks

What happens during a bank run

See all cards
10 Reviews

Add your answer:

Earn +20 pts
Q: What is gaap?
Write your answer...
Still have questions?
magnify glass
Related questions

Where GAAP is implementing in Pakistan?


Short note of accounting standards and GAAP?

short note on GAAP

What is Pakistani GAAP?

ugly people need gaap to look nicer

How does GAAP affect financial reporting?

How does GAAP affect financial reporting?

What do you mean by gaap?

GAAP is an acronym for Generally Accepted Accounting Principles

When was GAAP established?

In 1992, the Auditing Standards Board established the GAAP hierarchy.

Importance of gaap?

The gaap principles are a standard framework for the reporting of financial information. The purpose of gaap is to make financial information easy to understand for individuals and businesses. Financial reporting methods can have an impact on the interpretation of results. Gaap eliminates confusion.

Full form of GAAP?

In Accounting/Finance arena GAAP stands for Generally Accepted Accounting Principals. Eevery company has to balance their books by GAAP standards and regulations.

What is the purpose of GAAP?

Generally Accepted Accounting Principles, or GAAP, are the standards used by accountants. GAAP ensures that all companies report financial information in a consistent manner.

Who can issue disclosure requirements for companies under its jurisdiction that may exceed gaap?

Sec, gaap,

What does GAAP stands for?

Generally Accepted Accounting Principles. There are different types of GAAP in todays world. For example, there is U.S. GAAP (generally accepted acccounting principles in the United States) and U.K. GAAP (generally accepted accounting principles in the United Kingdom).

What does the acronym GAAP stand for?

GAAP is an acronym for Generally Accepted Accounting Principles. GAAP is a series of basic rules accepted by those within the accounting community to perform accounting tasks.

People also asked