What is GAAP, and what is the purpose of GAAP? How do you think a potential...

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Accounting

What is GAAP, and what is the purpose of GAAP?
How do you think a potential creditor would view a startupcompany's financial statements? What would the creditor be lookingfor?
How do you think a potential investor would view a startupcompany's financial statements? What would the investor be lookingfor?

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What is GAAP and what is the purpose of GAAP GAAP stand for generally accepted accounting principles which contain accounting rules and regulation to be followed while preparing financials of the firm There is no standard GAAP across the world and it varies based on country to country In USA SEC require all companies to comply with US GAAP while in UK this is called IFRS Substance of any accounting principle will remain same Purpose of GAAP is to See Answer

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What is GAAP, and what is the purpose of GAAP?How do you think a potential creditor would view a startupcompany's financial statements? What would the creditor be lookingfor?How do you think a potential investor would view a startupcompany's financial statements? What would the investor be lookingfor?