What does GAAP stand for?

GAAP stands for Generally Accepted Accounting Principles. This term refers to a widely recognized set of rules, standards, and conventions that govern the preparation of financial statements. These principles provide a framework that ensures consistency, comparability, and transparency in financial reporting, which is crucial for various stakeholders including investors, regulators, and the general public.

GAAP encompasses numerous guidelines that dictate how financial transactions should be recorded, reported, and disclosed. By adhering to these principles, organizations can present their financial positions and performance in a way that is understandable and meaningful to those who rely on that information for decision-making.

The other options listed do not accurately represent the recognized accounting framework used predominantly in the United States. While they may contain relevant words, they do not embody the established norms and practices of financial reporting defined by GAAP.