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Generally Accepted Accounting Principles (GAAP) is a set of accounting standards and principles that provide a framework for financial reporting. It is used by companies to ensure that their financial statements are consistent and accurate. GAAP is based on the principles of transparency, consistency, and reliability. It is designed to provide investors and other stakeholders with a clear understanding of a company's financial position.
GAAP is used by companies to prepare their financial statements, including the balance sheet, income statement, and statement of cash flows. It also includes the disclosure of any related party transactions and other information that may be relevant to investors. Companies must adhere to GAAP when preparing their financial statements, and any deviations must be disclosed.
The GAAP market is comprised of companies that provide services related to GAAP compliance. These services include auditing, accounting, and consulting. Companies in the GAAP market include Ernst & Young, Deloitte, KPMG, PricewaterhouseCoopers, and Grant Thornton. Show Less Read more