Generally Accepted Accounting Principles (GAAP) are a set of rules and standards used in the United States to ensure consistency and transparency in financial reporting. These principles guide how companies prepare their financial statements, making it easier for investors, regulators, and other stakeholders to understand and compare financial information. GAAP covers various aspects of accounting, including revenue recognition, asset classification, and expense reporting. By adhering to these standards, businesses can provide a clear and accurate picture of their financial health, which helps maintain trust and accountability in the financial markets.