In the United States,the accounting rules that businesses use for external financial reporting purposes differ from the accounting rules required for taxation purposes.

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Generally accepted accounting principles (GAAP) are used for external financial reporting purposes, while the Internal Revenue Service (IRS) has its own set of tax accounting rules. These two sets of rules have some differences and businesses must comply with both for financial reporting and tax purposes.

In the United States,the Accounting Rules That Businesses Use for External