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Bart complied with his friends' request to join them in smashing decorative pumpkins early one Halloween evening. Later that night, he was surprised by his own failure to resist their pressures to throw eggs at passing police cars. Bart's experience best illustrates the
GAAP
Generally Accepted Accounting Principles, a common set of accounting rules and standards used in financial reporting.
Financial Statements
Formal records of the financial activities and position of a business, person, or other entity, essential for assessing financial health.
Audited
The process of officially inspecting an individual's or organization's accounts by an independent body to ensure accuracy and compliance with laws and regulations.
Non-cash Items
Expenses or incomes recorded in the income statement which do not involve actual cash flow, such as depreciation, stock-based compensation, or provisions.
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