GAAP

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies in the United States follow when preparing their financial statements. These principles ensure consistency, transparency, and comparability of financial information across organizations. GAAP covers how to recognize revenue, measure expenses, and present financial data, enabling investors, regulators, and other stakeholders to make informed decisions. By adhering to GAAP, companies demonstrate that their financial reports are accurate and trustworthy, fostering confidence in their financial health and performance.