Which principle is part of GAAP regulations?

The principle of materiality is indeed a fundamental aspect of Generally Accepted Accounting Principles (GAAP). Materiality dictates that all information that could influence the decision-making of users of financial statements should be reported. This means that if an item is considered material, it must be included in the financial statements, as omitting it could mislead users regarding the financial position or performance of the entity.

In essence, materiality helps ensure that financial reporting is both relevant and useful. If a piece of information is immaterial, it can be excluded without significantly affecting the financial statements. This principle helps to balance the need for comprehensive reporting with the practicality of not overloading users with insignificant details.

The other options, while they pertain to financial and accounting practices, do not serve as established principles within GAAP. Transparency is a broader concept implying openness in reporting but is not a specific GAAP principle. Equity relates more to ownership interests rather than a principle guiding the preparation of financial statements. Liquidity refers to a company's ability to meet its short-term obligations and is more of a financial characteristic than a principle of accounting.