Question

In one to three sentences, describe reliable financial information.

Answer 1

Reliability Purpose. The purpose of making financial statements reliable is to provide accurate financial information for the user to use when making financial decisions. An investor wants to know that the net income reported accurately represents the company's activities for the period.

Answer 2

Reliable financial information basically means trustworthy information on which the investors and creditors can believe.

The information should be accurate, neutral, un biased and fair. It is important to use relevant and reliable information when you are making financial decisions. 100% reliability is required when you are dealing with money.