{"id":20385,"date":"2023-05-20T16:24:53","date_gmt":"2023-05-20T16:24:53","guid":{"rendered":"https:\/\/www.goodacademic.com\/blog\/questions\/describe-the-purpose-of-u-s-generally-accepted-accounting-principles-u-s-gaap-and-the-benefits-that-these-rules-provide\/"},"modified":"2023-05-20T16:24:53","modified_gmt":"2023-05-20T16:24:53","slug":"describe-the-purpose-of-u-s-generally-accepted-accounting-principles-u-s-gaap-and-the-benefits-that-these-rules-provide","status":"publish","type":"questions","link":"https:\/\/www.goodacademic.com\/blog\/questions\/describe-the-purpose-of-u-s-generally-accepted-accounting-principles-u-s-gaap-and-the-benefits-that-these-rules-provide\/","title":{"rendered":"Describe the purpose of U.S. generally accepted accounting principles (U.S. GAAP) and the benefits that these rules provide."},"content":{"rendered":"<div>Must answer the question from details in the articel below:<\/div>\n<div><\/div>\n<div><\/div>\n<div>\n<p style=\"cursor: auto; color: inherit;\">A significant body of <span style=\"cursor: auto; color: inherit;\"><a style=\"cursor: auto; color: inherit;\">generally accepted accounting principles<\/a><\/span> (frequently referred to as <strong style=\"cursor: auto; color: inherit;\">U.S<\/strong>. <strong style=\"cursor: auto; color: inherit;\">GAAP<\/strong>)<br \/>\n has been created in the United States over many decades to provide<br \/>\nauthoritative guidance and standardization for financial accounting.<br \/>\nWhen faced with a reporting issue, such as a lawsuit, the accountant<br \/>\nconsults U.S. GAAP to arrive at an appropriate resolution, one that<br \/>\nresults in fair presentation. If both the accountant and the decision<br \/>\nmaker understand U.S. GAAP, even the most complex financial information<br \/>\ncan be conveyed successfully. A proper likeness can be portrayed and<br \/>\ncommunicated.<\/p>\n<p style=\"cursor: auto; color: inherit;\">Thus, the<br \/>\nfinancial information to be distributed by an organization in the form<br \/>\nof financial statements is structured according to U.S. GAAP. This<br \/>\ntextbook is an exploration of those accounting principles that serve as<br \/>\nthe foundation for financial accounting in this country<sup style=\"cursor: auto; color: inherit;\">1<\/sup>.<\/p>\n<p style=\"cursor: auto; color: inherit;\">Based on coverage<br \/>\n here, students who seek to become accountants can learn to report<br \/>\nfinancial information that is fairly presented. That means that it is<br \/>\nreported according to U.S. GAAP so that it contains no material<br \/>\nmisstatements. Students who want to evaluate specific organizations in<br \/>\norder to make decisions about them should learn U.S. GAAP in order to<br \/>\nunderstand the data being reported.<\/p>\n<p style=\"cursor: auto; color: inherit;\">Although some<br \/>\nelements of U.S. GAAP have been in use almost throughout history, many<br \/>\nof these rules and principles are relatively new\u2014often developed within<br \/>\nthe last twenty to thirty years. Accounting principles evolve quite<br \/>\nquickly as the nature of business changes and new issues, problems, and<br \/>\nresolutions arise. Fairly important changes in U.S. GAAP occur virtually<br \/>\n every year.<\/p>\n<p style=\"cursor: auto; color: inherit;\">The existence of<br \/>\nU.S. GAAP means that a business in Seattle, Washington, and a business<br \/>\nin Atlanta, Georgia, will account for information in much the same<br \/>\nmanner<sup style=\"cursor: auto; color: inherit;\">2<\/sup>. Because of this standardization, any decision maker<br \/>\nwith an adequate knowledge of financial accounting\u2014whether located in<br \/>\nPhoenix, Arizona, or in Portland, Maine\u2014should be able to understand the<br \/>\n fairly presented financial information conveyed by a wide variety of<br \/>\ncompanies. They all speak the same language. Put simply, U.S. GAAP<br \/>\nenables organizations and other parties to communicate successfully.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Must answer the question from details in the articel below: A significant body of generally accepted accounting principles (frequently referred to as U.S. GAAP) has been created in the United States over many decades to provide authoritative guidance and standardization for financial accounting. When faced with a reporting issue, such as a lawsuit, the accountant [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[1112],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/20385"}],"collection":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/comments?post=20385"}],"version-history":[{"count":0,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/20385\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/media?parent=20385"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/disciplines?post=20385"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/paper_types?post=20385"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/tagged?post=20385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}