Because each business is unique, the accounting profession recognizes that the accounting principles followed by one company may need to be completely different from the accounting principles followed by another firm.

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In order for investors, creditors, government officials, employees, and other stakeholders to have faith and confidence in accounting reports and financial statements, it is important that methods used by accountants adhere to specific guidelines. The Financial Accounting Standards Board (FASB) defines the generally accepted accounting principles (GAAP) that accountants must follow.

Because Each Business Is Unique, the Accounting Profession Recognizes That