GAAP: Generally Accepted Accounting Principles.

This is a set of basic rules and principles set by the Financial Accounting and Standard Board (FASB). These rules help the manager in managing accounts properly. It increases the transparency of accounts. It helps in fair representation of accounts.

Revenue:

Revenue means anything the company received in return, cash, cash claim, any asset, etc.

It is recognized when earned and realized not only when received.

Net income:

Net income is the income generated by the company after deducting all expenses, interest, and taxes.

Audit:

The audit is the process of checking the financial statements of a company `to ensure that it is 100% authentic and free from any kind of bias or fraud.