![us gaap generally accepted accounting principles us gaap generally accepted accounting principles](https://i1.wp.com/iedunote.com/img/1119/gaap-rule-principles-assumptions-in-accounting-gaap.jpg)
GAAP requires publicly traded companies to adhere to these four standards: When each company reports and maintains its financial records the same way, it’s easier for investors to compare companies to make investment decisions. Securities and Exchange Commission (SEC) requires all publicly traded companies to adhere to GAAP standards.
![us gaap generally accepted accounting principles us gaap generally accepted accounting principles](https://i.pinimg.com/originals/e3/bf/dd/e3bfddf05f0aeffe226ba2e69d075a11.png)
These standards apply to corporate, government and nonprofit accounting. GAAP standards were developed by the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). GAAP refers to the rules and standards used for financial reporting in the United States. This information will help you improve your accounting skills, understand accounting principles and pinpoint how your business should track and measure its financial information.Įditor’s note: Looking for the right accounting software for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs. However, it’s a good idea to have a basic understanding of GAAP standards.
![us gaap generally accepted accounting principles us gaap generally accepted accounting principles](https://i.ytimg.com/vi/-STtswWbXCw/maxresdefault.jpg)
After all, GAAP standards apply to publicly traded companies, so these rules don’t always feel relevant to your small business. If you run a small business, you may not know much about the Generally Accepted Accounting Principles (GAAP).