Question

What is GAAP and what is the purpose of GAAP?

Answer 1

GAAP is a set of common accounting principles that is followed by the companies in the United States.

The purpose of GAAP is to ensure that the financial reporting done by companies is transparent and consistent with the accounting standards.

Also read:

• MCQs on GAAP
• GAAP (Generally Accepted Accounting Principles)
• Difference Between GAAP and IFRS

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