GAAP concepts
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND BASIC CONCEPTS (GAAP) 1. If every accountant used his or her own rules for recording transactions, the financial statements would be useless in making comparisons. 2. Therefore, accountants have agreed to apply a common set of measurements principles (a common language) to record information for financial statements. Otherwise, decision makers could not use or compare financial statements. GAAP :- The rules that govern accounting are called GAAP. GAAP Overview GAAP are the broad framework or the structure which is used to prepare financial statements of the companies. Like JAVA, C++ or HTML are used by software engineers to write computer programme, in the same manner accountants all over the world use a language- GAAP, to prepare financial statements. But there is one huge difference between Computer language and GAAP. Unlike a programmer who uses the same language irrespective of whether he is sitti
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