Summary GAAP accounting notes

Accounting Fundamentals (U.S. GAAP Standard)


1. Introduction to U.S. GAAP:

Generally Accepted Accounting Principles (GAAP) are the accounting standards used in the United

States. They ensure consistency, transparency, and comparability of financial statements.



2. Key Principles of GAAP:

- Principle of Regularity

- Principle of Consistency

- Principle of Sincerity

- Principle of Permanence of Methods

- Principle of Non-Compensation

- Principle of Prudence

- Principle of Continuity

- Principle of Periodicity

- Principle of Full Disclosure



3. Financial Statements under GAAP:

- Income Statement

- Balance Sheet

- Statement of Cash Flows

- Statement of Shareholders' Equity



4. Basic Accounting Equation:

Assets = Liabilities + Equity



Example: