GAAP

GAAP, or Generally Accepted Accounting Principles, refers to a set of rules, standards, and practices that companies and organizations in the U.S. follow when presenting financial statements. These principles provide a consistent and transparent framework for reporting financial information, allowing stakeholders to compare and analyze financial data across different companies and industries. GAAP covers various topics, including revenue recognition, balance sheet item classification, and materiality. By adhering to GAAP, companies can build trust with investors, regulators, and other users of financial statements.