Question

What are the generally accepted accounting principles?

Answer 1

What are 'Generally Accepted Accounting Principles - GAAP'Generally accepted accounting principles (GAAP) are a common set of accounting principles, standardsand procedures that companies must follow when they compile their financial statements. ... GAAPimproves the clarity of the communication of financial information.

Answer 2

Answer:

The concepts and rules that govern financial accounting practice.

Explanation:

Financial accounting is governed by concepts and rules known as generally accepted accounting principles (GAAP). GAAP wants information to have relevance and faithful representation. Relevant information affects decisions of users. Faithful representation means information accurately reflects the business results.