In: Finance
Is GAAP part of accounting
true or false?
TRUE, GAAP is apart of accounting
GAAP stands for Generally Accepted Accounting Principles. The GAAP sets rules and standards for the publicly listed companies to follow when preparing financial statements. The accountants within the firm refer to GAAP for properly accounting for the transactions.
GAAP sets standards so that it is easier for the financial analysts to analyze and compare the performances of different companeis.