What is GAAP?

Answer by  janedoe (701)

GAAP stands for Generally Accepted Accounting Principles. It's a method of bookkeeping/accounting used by CPAs and CFOs working with corporations. Its purpose is to create a standardized method of bookkeeping, making a company's accounting more transparent. This protects share holders, lenders, and investors by allowing them to know if they are getting an accurate financial picture of a company.

Answer by  jlwilson6 (1098)

GAAP is Generally Accepted Accounting Principles. These are some set rules that accountants can follow. It is basically a procedure they can follow so that they can prepare financial documents.