Generally Accepted Accounting Principles, or GAAP for short, are a set of standards and procedures used by companies to ensure that their financial documents and reports are consistent and reliable. They define the rules for measuring, guiding and disclosing financial information in accordance with accepted practices in the United States. GAAP is a comprehensive collection of concepts, conventions and methods used to measure and report on a company’s performance. It consists of principles, assumptions, objectives, conventions and rules, all of which help ensure accurate and transparent financial reporting. With GAAP, organizations can compare their numbers with other businesses in the same industry and make informed decisions about their finances.