GAAP Full Form

GAAP is the term used in the context of accounting practices followed by majority of companies in the world. Full form of GAAP is Generally Accepted Accounting Principles, these principals ensure that firms across the globe follow more or less the same procedures for recording the accounting transactions and hence paving the way for a common platform where various companies across the world can be compared and evaluated by all the interested parties like investors, creditors, debtors, government, employees etc…, to see whether the firm is presetting true financial position or not.

However one shout not be too naïve in believing that firm which has followed the GAAP is good because there are many loopholes using which the company can window dress the accounts leading to false picture about the financial position of the business.

0 comments… add one

Leave a Comment

Related pages

devalutiondiscounting and rediscounting of billswhat is income effect and substitution effectsystematic and non-systematic risktrade discount examplecapital account convertibilityconsigner meanswhat is slr crrmonopolistically competitive marketscost plus pricing advantages and disadvantagesadvantages of pricing strategiesforex direct quotemeaning of discounting of billsintroduction of barter systemprice discrimination advantages and disadvantagesdisadvantages of budgetingadvantages and disadvantages of discounted cash flowmarketing skimming definitionwhat is marginal costing in management accountingnse pre openwhat is an unqualified audit opiniondifference between consignee and consignordistinction between shares and debentureswhat is the difference between direct and indirect labordisadvantages of comparative advantage theoryadvantages and disadvantages of privatization pdfadvantages and disadvantages of social media advertisingdefinition of fixed capitalbenefits of devaluing currencyadvantages and disadvantages of cash managementmanaged float exchange rate systemadvantages and disadvantages of cash managementwhat are liquid assets examplesadjusting entry for unearned revenuedifference between overdraft and term loanoperating lease and finance lease differencemeaning of consigneeauthorized shares vs outstanding shareswhat are the advantages of capitalismcomplements in economics examplesdisadvantages of advertslow of diminishing marginal utilitymeaning of bill discountingdisadvantages of payback periodwhy trial balance is preparedfinal goods vs intermediate goodshedgers in derivative marketcomplementary goods economics examplesparticipants in derivative marketdisadvantages of global tradebenefits of deflationwhat is capm in financelaw of diminished returnsderived demand and autonomous demandcost concept accountingwhat are cash inflowslifo disadvantagesplanned economy disadvantagesdifference between a creditor and a debtordeflation advantages and disadvantagesdisadvantages of organizational chartdisadvantages of student loansnegative aspects of capitalismadvantages and disadvantages of lifo and fifodisadvantages of jitabsolute advantage trade theoryaccounting and economic profitwhat is autocratic leadership in businessveblen goodsadvantages and disadvantages of developing countriesdebentures advantagesaccounting concept going concernpayback method of investment appraisalstrengths and weaknesses of socialismglobalization benefits and drawbackswhat are the disadvantages of budgetingwho is autocratic leaderfull form of fmcgautocratic leadershipincome effect and substitution effect exampleswhats a direct quote