GAAP

The Generally Accepted Accounting Principles

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GAAPs are guiding accounting principles in the recording and presentation processes of accounting. These are not laws but are practices that help in the verifiability of financial statements.

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The following are the GAAPs (CREAM-OH):

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1. Consistency

2. Revenue Recognition Principle

3. Expense Recognition Principle

4. Adequate disclosure

5. Materiality

6. Objectivity

7. Historical cost