Generally Accepted Accounting Principles - GAAP
Generally Accepted Accounting Principles or GAAP is a collection of accounting principles, standards and procedures that companies use while preparing financial statements and handling specific accounting situations. The Financial Accounting Standards Board, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission provide guidance about acceptable accounting practices. GAAP has been imposed on companies primarily to standardize the reporting of financial statements in the United States.