Keyword Analysis & Research: gaap usa

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What is GAAP and why is it necessary?

GAAP is an acronym for generally accepted accounting principles. It’s a set of accounting rules and standards that allow for uniform preparing of financial reporting - required by law for publicly traded companies.

What are the four principles of GAAP?

A system known as the Generally Accepted Accounting Principles defines four basic assumptions, four basic principles and four basic constraints to business accounting. The four basic principles of GAAP deal with the way that money flows into and out of the business as well as the way that this flow is documented.

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