BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Generally accepted accounting principles, or GAAP, are standards that encompass the details, complexities, and legalities of business and corporate accounting. The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its comprehensive set of approved accounting methods and practices.

Detailed explanation-2: -GAAP consists of a common set of accounting rules, requirements, and practices issued by the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). GAAP sets out to standardize the classifications, assumptions and procedures used in accounting in industries across the US.

Detailed explanation-3: -GAAP prefers the accrual accounting method because it records sales at the time they occur, which provides a clearer insight into a company’s performance and actual sales trends as opposed to just when payment is received.

Detailed explanation-4: -Generally accepted accounting principles (GAAP) refer to a common set of accounting rules, standards, and procedures issued by the Financial Accounting Standards Board (FASB). Public companies in the U.S. must follow GAAP when their accountants compile their financial statements.

Detailed explanation-5: -Generally Accepted Accounting Principles (GAAP) is a framework that chalks down rules, procedures, guidelines and best practices for financial accounting and reporting of business transactions. Generally Accepted Accounting Principles ensure consistency, transparency, objectivity, materiality, and full disclosure.