Why generally accepted accounting principles are important?

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What makes the Generally Accepted accounting Principles important. Is is the fact that they are used by many companies or are they actually robust standards?

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score 0 · Answer 1 · 2012-12-02T16:54:48+00:00

Generally Accepted Accounting Principles or GAAP are important because the offer a robust accounting framework for the preparation of the accounting statements, enhance the confidence of the investors and promote a basis of comparison for companies that operate in similar industries.