What does GAAP stand for?

GAAP stands for Generally Accepted Accounting Principles. This term encompasses a set of accounting standards, principles, and procedures that companies in the United States must follow when compiling their financial statements. These principles provide a framework for financial reporting and help ensure consistency, reliability, and comparability of financial information across different organizations, making it essential for investors, regulators, and other stakeholders who rely on accurate and standardized financial data. Organizations such as the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB) establish these guidelines to uphold transparency and integrity in financial reporting.

The other options reflect concepts that are not widely recognized or established standards in accounting, which distinguishes GAAP as the correct answer.