What Are Generally Accepted Accounting Principles (GAAP)?

Generally Accepted Accounting Principles, or GAAP, is a standardized set of rules and systems used by all firms with regards to their financial statements. All financial statements have to conform to GAAP for them to be credible and believable. The reason behind GAAP is so that all firms comply to the same basic level, and this means investors know where from and how the numbers on their financial statements are derived, giving them more confidence in their accuracy.

To learn more about this concept and become a master at Financial Statement modeling, you should check out our FSM Modeling Course. Learn more here. 

Module 1: Getting Started

Module 2: Fundamental Concepts

Module 3: The Income Statement

Module 4: Working Capital

Module 5: PP&E and Intangibles

Module 6: The Cash Flow Statement

Module 7: Debt & Interest Schedule

Module 8: Finishing Your Model

Module 9: Bonus

Learn More Here

Related Terms

Return to Finance Dictionary

Start Discussion

Total Avg Compensation

September 2021 Investment Banking

  • Director/MD (10) $853
  • Vice President (38) $367
  • Associates (220) $232
  • 2nd Year Analyst (133) $153
  • 3rd+ Year Analyst (30) $147
  • Intern/Summer Associate (103) $143
  • 1st Year Analyst (484) $135
  • Intern/Summer Analyst (376) $82