What Are Generally Accepted Accounting Principles (GAAP)? Which Entity Is

question 58

Essay

What are Generally Accepted Accounting Principles (GAAP)? Which entity is currently responsible for determining GAAP?

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Definitions:

Revenues Recognized

The process by which revenue is recorded in the financial statements once it is earned and realizable.

Interim Periods

Shorter reporting periods within a financial year, such as quarters or half-years, used for internal or external financial reporting.

Geographic Area

A specific physical region or location defined for the purposes of economic analysis, marketing, or operational strategy.

U.S. Company

A corporation that is registered and operates within the United States, adhering to the laws and regulations of the U.S. government and states in which it operates.