Generally Accepted Accounting Principles

A Generally Accepted Accounting Principles is a guideline for financial accounting.

• AKA: GAAP.
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• Example(s):
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• Counter-Example(s):
  • Generally Accepted Auditing Standards (GAAS).
• See: Accrual Basis, Standard Accounting Practice, Accountant, Financial Statements, Cash Method of Accounting.

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References

2016

• (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/Generally_accepted_accounting_principles Retrieved:2016-6-3.
  • Generally accepted accounting principles (GAAP) are the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards or standard accounting practice. These include the standards, conventions, and rules that accountants follow in recording and summarizing and in the preparation of financial statements. Many businesses choose to "opt out" of GAAP practices as they operate on a cash basis, as opposed to an accrual basis. A comparison would be the way that most people balance their checkbooks: when a check is written, its amount is deducted from the total balance even though the funds have not yet left the account. Financial decisions made after the check is written are based on the balance after the check is deducted.
• (City Council of Barnstable, 2016b) ⇒ Town of Barnstable. (2016). “Town of Barnstable Adopted Operating Budget - 2017."
  • QUOTE: Generally Accepted Accounting Principles (GAAP): Uniform minimum standards and guidelines for financial accounting and reporting that serve to achieve some level of standardization

2014

• (PA DCED, 2014) ⇒ PA DCED. (2014). “DCED Chart of Accounts for Municipalities, 5th edition.” In: Pennsylvania Department of Community and Economic Development (DCED) Library.
  • QUOTE: Generally accepted accounting principles (GAAP) for governmental accounting and financial reporting established by the Governmental Accounting Standards Board (GASB) apply different basis for different types of funds as follows:

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