Accounting and GAAP

Discuss what is Accounting and why is it important? Be sure to include the different types of users of Accounting and their need for accounting.

What is GAAP and why is it important?

Please provide references if used in the answer.

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Solution Preview that numbers recorded on financial statement are kept accurately and that firm's taxes are paid properly and on time. They "analyze and communicate financial information for various entities such as companies, individual clients, and government. . . many accountants also offer budget analysis, financial and investment planning, information technology consulting, and limited legal services" (United States Department of Labor, 2009).

Managers use accounting to satisfy the stakeholders in the organization (owners, government, financiers, suppliers, customers, employees etc). Managers use the financial information in accounting to develop and implement strategy by planning for the future (budgeting); making decisions about products, services, prices, and what costs to incur. They also use it to ensure that plans are put into action and are achieved.

GAAP is ...