US Generally Accepted Accounting Principles (GAAP)

US Generally Accepted Accounting Principles (GAAP) are a set of standardized rules and guidelines that companies follow when preparing financial statements. They ensure consistency, transparency, and comparability of financial information across different organizations. GAAP covers how to recognize revenue, record expenses, value assets, and disclose financial details. This framework helps investors, regulators, and other stakeholders make informed decisions by ensuring financial reports are accurate, reliable, and uniformly prepared across businesses. Essentially, GAAP provides a common language for financial reporting in the United States.