Gaap (Noun)
Meaning
A collection of rules and procedures and conventions that define accepted accounting practice; includes broad guidelines as well as detailed procedures.
Classification
Nouns denoting groupings of people or objects.
Examples
- The company's financial statements had to comply with GAAP to be considered legitimate by the investors.
- The accountant spent hours reviewing the client's books to ensure that all transactions were documented in accordance with GAAP.
- The audit revealed several discrepancies that indicated the company had not been following GAAP in its financial reporting.
- GAAP provides a framework for financial reporting that allows investors and analysts to compare the performance of different companies.
- The new hire was tasked with updating the company's accounting system to conform to the latest changes in GAAP.