generally accepted accounting principles or gaap are a set of official rules, standards and procedures that publicly traded companies are required to use in preparing their financial statements. gaap standards dictate how companies record and report their financial data and are used to ensure consistency and accuracy in accounting practices. the financial accouting standards board, fasb, is the source of most gaap rules in the united states. gaap principles are supposed to give investors confidence in the accuracy of a company's financial statements and help investors accurately compare one company's financial statements to another's, especially when those companies are in the same industry. some examples of gaap in use include how quarterly financial statemants are prepared in the same manner as annual financial and how current assets should include cash, marketable securities, accounts and notes receivable, unearned income, inventory and prepaid expenses. however, despite gaap's good intenstions, companies often have discresion to use varying methods for valuing assets and recognizing costs and revenue. this means that there is still ? for companies to ? the numbers. so, investors need to examine financial statements carefully for signs of manipulated accouting data. investors should read the company summary of significant accounting policies and all of the footnotes to its financial statements which contain key information to supplement the figures on the company's financial statements.
- generally accepted accounting principle（gaap）・・・米国会計基準
- marketable security・・・市場性証券
- notes receivable・・・受取手形
- unearned income・・・前受収益
- prepaid expense・・・前払費用