• Understanding GAAP (Generally Accepted Accounting Principles):

  GAAP serves as the standard framework for financial accounting in the United States, ensuring consistency and comparability in financial reporting. Explain the core principles of GAAP and how they guide accounting practices, including relevance, reliability, comparability, and consistency. Discuss the importance of GAAP in providing relevant and reliable financial information to investors, creditors, and other stakeholders. Furthermore, elaborate on the role of regulatory bodies such as the Financial Accounting Standards Board (FASB) in establishing and updating GAAP standards to reflect changes in the business environment.