GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN USA: ADVANTAGES AND DISADVANTAGES

Abstract

Lack of standards governing the preparation of financial statements of companies allows them to manipulate this data and provide investors with an unreliable picture of the financial position of the company, which forced the federal government in the United States of America to legislate a set of principles governing the preparation of financial statements for companies. In this article, we will learn about the importance of these criteria, as well as discuss their most important advantages and disadvantages.