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Third-parties who rely on the information distributed have the right that the data is free from bias and inconsistency. For this reason, financial accounting relies on certain guidelines that are called "Generally Accepted Accounting Principles" (GAAP). The Generally Accepted Accounting Principles also show us the detailed rules and standards issues by the Financial Accounting Standards Board (FASB.) In any report of financial statements, the researcher must indicate to the reader whether or not the information contained within the statements complies with the GAAP. Finally, the GAAP reveals to us as managers the generally accepted industry practices...
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