What does GAAP stand for?

The term GAAP stands for "Generally Accepted Accounting Principles." This framework provides a set of rules and guidelines that govern how financial statements should be prepared and presented, ensuring consistency, transparency, and comparability in the financial reporting process across different organizations. GAAP encompasses a wide range of accounting practices, principles, and procedures that are widely accepted in the accounting community, enabling stakeholders to make informed decisions based on reliable financial information. Understanding GAAP is crucial for accountants, auditors, and financial managers, as well as for investors and regulators who rely on accurate financial reporting for their assessments and decisions.