Recruiter's Glossary

Examples: COGS • Working Capital • Activity-Based Costing

GAAP

Term from Accounting industry explained for recruiters

GAAP (Generally Accepted Accounting Principles) is the standard set of rules that accountants use in the United States to prepare and present company financial statements. Think of it as a common language that all accountants use to make sure financial reports are consistent and can be easily understood by others. When companies say they "follow GAAP," it means they're using these standard rules, similar to how everyone follows the same traffic rules when driving. Some similar terms you might see are "accounting standards" or "financial reporting standards."

Examples in Resumes

Prepared monthly financial statements in accordance with GAAP

Led team of 5 accountants ensuring GAAP compliance in all reports

Implemented new accounting procedures to maintain GAAP standards

Conducted financial audits following Generally Accepted Accounting Principles

Typical job title: "Accountants"

Also try searching for:

Accountant Staff Accountant Senior Accountant Financial Accountant Corporate Accountant Financial Reporting Analyst Accounting Manager

Where to Find Accountants

Professional Organizations

Job Boards

Professional Networks

Example Interview Questions

Senior Level Questions

Q: How would you handle a situation where you discover historical financial statements don't comply with GAAP?

Expected Answer: A senior accountant should discuss creating an action plan, assessing the impact, communicating with stakeholders, and implementing corrective measures while ensuring proper documentation of changes.

Q: How do you stay current with changes in GAAP requirements?

Expected Answer: Should mention professional development, continuing education, subscribing to accounting updates, participating in professional organizations, and implementing processes to train team members on new standards.

Mid Level Questions

Q: What are the main financial statements required under GAAP?

Expected Answer: Should explain the balance sheet, income statement, cash flow statement, and statement of shareholders' equity in simple terms and how they work together.

Q: How do you ensure GAAP compliance in day-to-day accounting operations?

Expected Answer: Should discuss review processes, checklists, documentation procedures, and internal controls used to maintain GAAP compliance.

Junior Level Questions

Q: What are the basic principles of GAAP?

Expected Answer: Should be able to explain basic concepts like consistency, matching, materiality, and full disclosure in simple terms.

Q: What's the difference between cash and accrual accounting under GAAP?

Expected Answer: Should explain how cash accounting records transactions when money changes hands, while accrual accounting records them when earned, regardless of cash movement.