Generally Accepted Accounting Principles (GAAP) are the standard framework of rules and guidelines for financial accounting and reporting. This set of guidelines and regulations helps to ensure that businesses and organizations accurately report their financial information and activities in an understandable and consistent way. As such, it serves as an important tool in helping to inform decision makers and investors about the financial health of a company or organization. GAAP is also a cornerstone of international commerce, as it ensures uniformity across different countries and markets. By following these principles, companies can increase the reliability of their financial information and reduce potential risks associated with overexposure or under-exposure.