Identify the full form of GAAP.

Generally Accepted Accounting Principles

The correct answer is option (3)- Generally Accepted Accounting Principles.

GAAP stands for Generally Accepted Accounting Principles. It's a set of accounting standards, principles, and procedures that companies use to prepare and present their financial statements. These principles ensure that financial reporting is consistent, transparent, and reliable, providing useful information to investors, creditors, and other stakeholders. GAAP provides guidelines for how to record and report financial transactions, including rules for revenue recognition, expense recognition, asset valuation, and financial statement presentation. Adhering to GAAP helps ensure that financial statements accurately reflect a company's financial position and performance, making it easier for stakeholders to compare financial information across different companies.