Final answer:
The GAAP is created by the Financial Accounting Standards Board (FASB), recognized by the SEC. These accounting principles ensure consistency, reliability, and comparability in financial reporting.
Step-by-step explanation:
The Generally Accepted Accounting Principles (GAAP) are created by the Financial Accounting Standards Board (FASB), which is a private, non-profit organization. The FASB is recognized by the U.S. Securities and Exchange Commission (SEC) as the designated accounting standard-setter for public companies. GAAP is a collection of commonly-followed accounting rules and standards for financial reporting. The principles serve to ensure that financial statements are consistent, reliable, and comparable across different entities.