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Financial Statements Have To Follow GAAP?
Financial statements must follow GAAP rules to be valid. GAAP is a set of guidelines and rules established by the Financial Accounting Standards Board (FASB) and the American Institute of Certified Public Accountants (AICPA) that provide a framework for how financial statements should be prepared and well presented. These guidelines and rules are intended to ensure that financial statements are consistent and comparable across different companies and industries and that they accurately reflect the underlying financial performance and position of the business. It can be summarized as follows:
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