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What is Understanding GAAP Principles and Standards about?

Generally Accepted Accounting Principles (GAAP) are the common set of accounting standards, procedures, and conventions that companies use to compile their financial statements. There are three major components of GAAP - basic principles, assumptions, and standards. The basic principles include the entity principle, double entry principle, cost principle, accounting equation, and matching principle. The assumptions include going concern, fixed accounting period, and stable monetary value. Standards refer to

Author

tasyriq

Language

EN