Why Do U.S.accountants Follow Generally Accepted Accounting Principles (GAAP)

question 6

Essay

Why do U.S.accountants follow generally accepted accounting principles (GAAP)?

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Definitions:

Compounded Quarterly

This term describes the method of calculating interest by adding the interest to the principal sum every quarter, leading to compound interest.

Compounded Semi-annually

Interest that is calculated and added to the account balance twice a year.

Annual Payments

Payments that are made once a year.

Payout Figure

The total amount paid out to a policyholder in an insurance claim or to an investor in dividends or withdrawals.