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Frequently Asked Questions

What is GAAP accounting principles mean?

What it is: Generally Accepted Accounting Principles (GAAP) is a framework of accounting standards, rules and procedures defined by the professional accounting industry, which has been adopted by nearly all publicly traded U.S. companies.

What does GAAP stand for in finance?

GAAP stands for Generally Accepted Accounting Principles. They are the standards and procedures companies commonly use to account for their finances and compile financial statements.

What kind of financial reporting requirements does GAAP set out?

Per generally accepted accounting principles (GAAP), companies are responsible for providing reports on their cash flows, profit-making operations and overall financial conditions. There are three major financial statements required under GAAP: the income statement, the balance sheet and the cash flow statement.


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