Generally Accepted Accounting Principles (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 auditor reviewed the company's financial statements to ensure compliance with generally accepted accounting principles.
- The accountants carefully followed generally accepted accounting principles to prepare an accurate and transparent balance sheet.
- The firm's financial reports adhered to generally accepted accounting principles, allowing for easy comparison with industry competitors.
- To increase transparency and credibility, the company adopted generally accepted accounting principles for all its business transactions.
- Financial institutions and regulatory bodies require businesses to use generally accepted accounting principles for preparing and presenting financial statements.