Generally Accepted Accounting Principles, or GAAP, are a set of rules and regulations that define how financial behavior and transactions should be reported and recorded. By adhering to these standards, businesses provide consistent information to investors, lenders and other stakeholders about the health of their finances. GAAP standards determine what is included in reports, the format in which they should be presented, and when different types of reports need to be generated. These standards allow all parties to better understand the financial situation of an organization, providing a level playing field for businesses of all sizes. With the help of GAAP Accounting Standards, financial records can be trusted as accurate and reliable.