What is GAAP? | Accounting How To | How to Pass Accounting Class

What is GAAP? | Accounting How To | How to Pass Accounting Class is an accounting tutorial explaining Generally Accepted Accounting Principles (GAAP). It details the role and structure of GAAP, and explains the major GAAP assumptions, principles, and constraints including the revenue recognition principle and the matching principle that are the foundation of accrual basis accounting. This is an accounting tutorial for accounting students, business owners, and bookkeepers to explain accounting basics for beginners. Featuring Terrance the T-Account Rex and accounting educator, Caroline Grimm, this accounting tutorial is part the playlist series: How to Pass Accounting Class and Accounting Basics for Business Owners. ⏰ Accounting How To Time Stamps: 00:00 Introduction to Generally Accepted Accounting Principles 00:59 Reasons GAAP was developed. 02:15 GAAP Recommendations 3:00 Role of GAAP 03:11 GAAP vs IFRS 03:36 Structure of GAAP 03:45 Business Entity Assumption 04:16 Going Concern Assumption 04:36 Monetary Unit Assumption 04:46 Time Period Assumption 5:13 Historical Cost Principle 05:50 Revenue Recognition Principle 06:20 Matching Principle 06:56 Full Disclosure Principle