Question

Why is GAAP important?

Answer 1

GAAP is important because it allows the investors to evaluate the company's performance by reviewing its financial statements. In addition to that, it provides companies with vital insights into their performance and policies. It also helps maintain consistency in financial reporting across companies.

Also read:

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