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GAAP (Generally Acceptable Accounting Principles)

GAAP stands for Generally Accepted Accounting Principles. It is a set of accounting standards, guidelines, and procedures that are used to prepare and present financial statements.

GAAP is used in the United States and many other countries to ensure that financial statements are prepared consistently and accurately, and can be understood by investors, creditors, and other stakeholders. Compliance with GAAP is typically required by law or regulation, and failure to comply can result in penalties or other legal consequences.