What Does GAAP Stand For?

Here we will discuss about the most frequently asked question “What Does GAAP Stand For” that is always asked in the Field of International Accounting Standards by newbie.

What is GAAP

GAAP stands for Generally Accepted Accounting Principles. All those Accounting Principles, rules and regulations that are universally accepted globally. These Principles include: Business Entity Concept, Going Concern Concept, Matching Concept and other Accounting Concepts. These standards are used while preparing the financial statements of Company Businesses to provide the fair presentation of financial Statements to users of financial statements according to International Accounting Standards - IAS - 1. Users of Financial Statements include Customers, Employees, Banks, Financial Institutions, Creditors and others.

So in the last, we can say that, “What Does GAAP Stand For” means that the Generally Accepted Accounting Principles which are widely accepted and adopted worldwide while preparing financial statements of company businesses.