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TERM OF THE DAY

Generally Accepted Accounting Principles (GAAP)

The generally accepted accounting principles (GAAP) are a set of accounting rules, standards, and procedures issued and frequently revised by the Financial Accounting Standards Board (FASB). Public companies in the U.S. must follow GAAP when their accountants compile their financial statements. GAAP is also widely used in governmental accounting.

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The Financial Accounting Standards Board (FASB) is an independent organization that sets accounting standards for companies and nonprofits in the United States. Read more

Revenue Recognition: What It Means in Accounting and the 5 Steps

Revenue recognition is a generally accepted accounting principle (GAAP)
that identifies the specific conditions in which revenue is recognized. Read more

Balance Sheet: Explanation, Components, and Examples

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholder equity at a specific point in time. Read more

Financial Statements: List of Types and How to Read Them

Financial statements are written records that convey the business activities and the financial performance of a company. Read more

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