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Hello Team,
Accrual accounting is the financial reporting model used by the majority of profit-oriented companies and by many not-for-profit companies. The fact that companies use the same model is important to financial statement users. Investors and creditors use financial information to make their resource allocation decisions. It’s critical that they be able to compare financial information among companies. To facilitate these comparisons, financial accounting employs a body of standards known as generally accepted accounting principles, of-ten abbreviated as GAAP (and pronounced gap). GAAP are a dynamic set of both broad and specific guidelines that companies should follow when measuring and reporting the information in their financial statements and related notes.
Regards,
Saiyid
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