What is GAAP?
submitted by Polly Esther

Horace Greenwald

GAAP stands for generally accepted accounting principles. Because information regarding a business is communicated through financial statements, it is important that they follow a standard framework so they can be easily understood by all interested parties. GAAP provides this framework.

GAAP can vary by location. For example, the US, UK, and China all have their own standards.

Abimbola

GAAP is the convention, rules and procedures necessary that explain and defines General Accepted Account principles