Financial accounting information is historical in nature, reporting on what has happened in the past. To facilitate comparisons between companies, this information must conform to certain accounting standards or principles called generally accepted accounting principles (GAAP).

"https://courses.lumenlearning.com/suny-finaccounting/chapter/gaap-generally-accepted-accounting-principles/ Please discuss this statement, emphasising the importance of a user of financial statements being able to compare financial statements prepared by different companies.

Answer rating: 100% (QA)

Accountants use generally accepted accounting principles GAAP to guide them in recording and reporti... View the full answer