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Even though, you have Meaning of GAAP homework help still it is important to know how GAAP can be defined. Here is how it is defined just read on and find out.
Definition of GAAP
The abbreviation of GAAP is Generally Accepted Accounting Principles. These principles mainly apply for financial reporting purposes. There some principles in this and these principles are –
- Economic entity assumption.
- Cost principle.
- Matching principles.
Revenue reorganization principle
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Objectives of GAAP
To understand the meaning of GAAP, it is essential that you must know what its objectives are. The objectives of GAAP are –
- These principles indicate the dealings of a financial institution in an organized way.
- Hence, it calculates the profited amount of the firm.
- This estimates and computes the probable amount of potential earnings.
- Identifies the assets and liabilities.
- The entire legal process is also included into this discipline.
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