What is the Purpose of Generally Accepted Accounting Principles (GAAP) and the Accounting Cycle?

The Purpose of General Accepted Accounting Principles (GAAP) is to provide the reliable information through financial reporting to the Users of Financial Statements.

The purpose of Accounting Cycle is to record accounting data in a systematic way in order to show true and fair view of financial statements to users of financial statements. If the accounting cycle is not completed accurately, then fair representation of financial statements can not be made to give accurate and reliable information to users of financial statements. So the Importance of Accounting Cycle must be considered while preparing financial statements of company businesses.

Note: Any mistake, error or fraud is Rectified And Corrected with Journal Entries in order to give true and fair view of Financial Statements to the users of financial statements.