GAAP In Accounting

Hello buddy can any one tell me that what is the Generally Accepted Accounting Principles - GAAP In Accounting please provide me some info pertaining the same ??

[Pathak]

Generally Accepted Accounting Principles - GAAP

Generally accepted accounting principles (GAAP) are the standard framework of guidelines for financial accounting used in any specified jurisdiction; generally known as accounting standards or standard accounting practice.

These include the standards, conventions, and rules that accountants follow in recording and summarizing and in the groundwork of financial statements.

Many businesses choose to "opt out" of GAAP practices as they operate on a cash basis, as opposed to an increase basis.

A comparison would be the way that most people balance their checkbook when a check is written , its quantity is deducted from the total balance even though the funds have not yet left the account.

Financial decisions made after the check is written are based on the balance after the check is deducted.

Generally Accepted Accounting Principles (GAAP) are a common set of accounting principles, standards and procedures that companies use to compile their financial statements.

GAAP are a amalgamation of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information.

GAAP is the acronym for generally accepted accounting principles.
In the U.S. that means

The fundamental accounting principles and guidelines such as the cost principle, matching principle, full disclosure, etc.,

the detailed standards and other rules issued by the Financial Accounting Standards Board (FASB) and its forerunner the Accounting Principles Board, and

generally accepted industry practices.