Acronyms - Not Terms - Other Agencies

Question 1

What does GAAP stand for?

Answer 1

Generally Accepted Accounting Principles)

Question 2

Why is GAAP important?

Answer 2

Accrual accounting is also the method that is required by GAAP.

Question 3

What accounting method is required by GAAP?

Answer 3

Accrual Accounting

Question 4

What does GAAP mean for a business, what does it help with?

Answer 4

This means that businesses that use accrual accounting are more likely to be compliant with accounting regulations.