Accounting is a reliable process of recording, organizing and analyzing financial information which helps to manage the business effectively. Accounting records financial transactions along with storing, sorting, retrieving, summing up and presenting the results in different reports and analyses. Accounting is also a area of research and practice dedicated to the execution of these activities. One part of accounting focuses on presenting the financial information in the form of general purpose financial statements that are distributed to people outside the company. In accordance with generally accepted accounting principles often referred to as GAAP or US GAAP, these external reports must be prepared.