So, what exactly are generally accepted accounting principles that exist in the United States today? The Big Four Hence problems like the Great Depression and other economic disasters occurred. For example, a lot of principles crucial to the financial world today were not in existence many years ago.
The reason why the time period is mentioned is the fact that these principles continuously evolve as the industry progresses. The basic definition of it is any accounting principles accepted by the general public during a specific time period. GAAP stands for Generally Accepted Accounting Principles.