The guidelines that accountants must follow in preparing financial statements are the:

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Generally accepted accounting principles (GAAP) are the guidelines that accountants must follow in preparing financial statements. GAAP includes the rules, standards, and procedures that public companies in the United States must follow when compiling their financial statements. It ensures consistency, accuracy, and comparability across financial reports and helps investors make informed decisions about investing in companies. While the SEC does provide guidance, it is not the primary source of accounting principles, and generally accepted auditing standards are related to the auditing process rather than financial statement preparation. There are also no specific government financial statement guidelines that apply universally to all organizations.

The Guidelines That Accountants Must Follow in Preparing Financial Statements