|Accountant · Bookkeeping · Trial balance · General ledger · Debits and credits · Cost of goods sold · Double-entry system · Standard practices · Cash and accrual basis · GAAP / IFRS|
|Balance sheet · Income statement · Cash flow statement · Equity · Retained earnings|
|Financial audit · GAAS · Internal audit · Sarbanes–Oxley Act · Big Four auditors|
|Fields of accounting|
|Cost · Financial · Forensic · Fund · Management · Tax|
Generally Accepted Accounting Principles (GAAP) is the americanized term used to refer to the standard framework of guidelines for financial accounting used in any given jurisdiction which are generally known as Accounting Standards. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements.
Financial accounting is information that must be assembled and reported objectively. Third-parties who must rely on such information have a right to be assured that the data are free from bias and inconsistency, whether deliberate or not. For this reason, financial accounting relies on certain standards or guides that are called "Generally Accepted Accounting Principles" (GAAP).
Principles derive from tradition, such as the concept of matching. In any report of financial statements (audit, compilation, review, etc.), the preparer/auditor must indicate to the reader whether or not the information contained within the statements complies with GAAP.
Generally Accepted Accounting Principles (GAAP) are the common set of accounting principles, standards and procedure that company use to make their financial statement. They can also be known simply as Accounting Standards.