You are considering investing in stock, but you cannot decide which of the two long-established manufacturing companies to invest in. How does GAAP help you with your decision? GAAP tells you which of the two companies is a better investment for you based on the companies' financial reports. GAAP lets you compare the financial statements of the two different companies to arrive at an informed decision with greater confidence that the financial statements are comparable. GAAP keeps both the companies you are deciding between from hiding assets and misstating their financial positions