What is the full form of GAAP?

The correct answer is option 2- Generally Accepted Accounting Principles.

GAAP stands for Generally Accepted Accounting Principles.

Financial statements are the end products of the accounting process, which are prepared in accordance with Generally Accepted Accounting Principles (GAAP).

Generally Accepted Accounting Principles (GAAP) refers to the rules or guidelines adopted for recording and reporting of business transactions, in order to bring uniformity in the preparation and the presentation of financial statements.