Corporate Finance Analysis
GAAP, or Generally Accepted Accounting Principles, refers to a set of accounting standards, principles, and procedures that companies in the U.S. must follow when compiling their financial statements. These guidelines ensure consistency, transparency, and comparability in financial reporting, which is crucial for stakeholders such as investors and regulators to make informed decisions. GAAP covers various aspects of accounting, impacting the income statement, balance sheet, and cash flow statement components.
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