GAAP Principles

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  • User warning: The following module is missing from the file system: addtoany. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: bootstrap_login_modal. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
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  • User warning: The following module is missing from the file system: contact. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: ctools. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
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  • User warning: The following module is missing from the file system: entity_token. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: jquery_update. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: libraries. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: metatag. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: special_menu_items. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: token. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: views_bootstrap. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: views_ui. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: xmlsitemap_custom. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: pathauto. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: xmlsitemap. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: xmlsitemap_engines. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: views. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: insert. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).
  • User warning: The following module is missing from the file system: admin_menu. For information about how to fix this, see the documentation page. in _drupal_trigger_error_with_delayed_logging() (line 1181 of /home2/hahuzone/public_html/includes/bootstrap.inc).

The Generally Accepted Accounting Principles (GAAP) are a set of standards and guidelines that provide a framework for financial reporting. The GAAP includes the following principles:

  1. Business Entity Concept: This principle assumes that a business is a separate entity from its owners, creditors, and other stakeholders.
  2. Going Concern Concept: This principle assumes that a business will continue to operate for the foreseeable future and will not go bankrupt.
  3. Historical Cost Principle: This principle requires that a business record assets at their original cost.
  4. Objectivity Principle: This principle requires that a business base its financial statements on objective evidence.
  5. Stable Monetary Unit Concept /Unit of Measurement: This principle assumes that the value of money is stable over time and that financial statements should be presented in a consistent unit of measurement.
  6. The Periodicity Concept /Accounting Period Concept: This principle assumes that a business can be divided into artificial time periods for the purpose of preparing financial statements.
  7. The Matching Principle: This principle requires that a business match expenses with the revenue they helped generate.
  8. Revenue Realization Principle: This principle requires that a business recognize revenue when it is earned, regardless of when payment is received.
  9. Adequate Disclosure Principle: This principle requires that a business disclose all relevant information in its financial statements.
  10. The Consistency Principle: This principle requires that a business use the same accounting methods from one period to the next.
  11. The Materiality Concept: This principle requires that a business consider the materiality of an item when deciding whether to include it in its financial statements.
  12. The Conservatisms (Prudence) Concept: This principle requires that a business be conservative in its estimates and assumptions, and that it report financial information in a way that is not overly optimistic.
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