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: -The four basic constraints associated with GAAP include objectivity, materiality, consistency and prudence. Objectivity includes issues such as auditor independence and that information is verifiable.

Detailed explanation-3: -GAAP aims to improve the clarity, consistency, and comparability of the communication of financial information. GAAP helps govern the world of accounting according to general rules and guidelines. It attempts to standardize and regulate the definitions, assumptions, and methods used in accounting across all industries.

Detailed explanation-4: -There are a total of ten major principles in GAAP. Five of these principles are the principle of regularity, the principle of consistency, the principle of sincerity, the principle of continuity and the principle of periodicity.

Detailed explanation-5: -Only the accrual accounting method is allowed by generally accepted accounting principles (GAAP). Accrual accounting recognizes costs and expenses when they occur rather than when actual cash is exchanged.