GAAP financial reports in the U.S.are intended to reflect the economic condition and performance of the reporting entity.

GAAP (Generally Accepted Accounting Principles) are a set of accounting rules and standards that are used to prepare financial reports in the U.S. These reports are intended to provide accurate and reliable information about the economic condition and performance of the reporting entity, and are used by investors, creditors, and other stakeholders to make informed decisions. Therefore, it is true that GAAP financial reports in the U.S. are intended to reflect the economic condition and performance of the reporting entity.