Since financial accounting is the process that provides financial reports to the general public, professionals in the accounting, trade and commerce, have developed and formed an accounting standard which will serve as the foundation of all accounting process and procedures performed. Such accounting standard is referred to as the Generally Accepted Accounting Principles (GAAP).
GAAP REPRESENTS the rules, procedures, practice and standards followed in the preparation and presentation of the financial STATEMENTS. Its purpose is to ensure consistency and COMPARABILITY of reported financial INFORMATION of business entities, in order to protect the USERS or general public, since they use financial reports in their economic decisions.

Since financial accounting is the process that provides financial reports to the general public, professionals in the accounting, trade and commerce, have developed and formed an accounting standard which will serve as the foundation of all accounting process and procedures performed. Such accounting standard is referred to as the Generally Accepted Accounting Principles (GAAP).
GAAP represents the rules, procedures, practice and standards followed in the preparation and presentation of the financial statements. Its purpose is to ensure consistency and comparability of reported financial information of business entities, in order to protect the users or general public, since they use financial reports in their economic decisions.