Information in a company's financial statements is considered to be reliable when it:
I is relevant to the decision making needs of users.
II represents faithfully the financial position,financial performance and cash flows of the entity.
III is neutral.
IV is prudent.
V reflects the economic substance of transactions,other events and conditions.
A)I,II,III and IV only
B)II,III,IV and V only
C)II,III and IV only
D)I,II,III,IV and V

Question

Quizplus · Accepted Answer

Reliable financial information should faithfully represent the entity's financial position, be neutral, prudent, and reflect the economic substance of transactions. Relevance is important but pertains more to usefulness than reliability.

Information in a Company's Financial Statements Is Considered to Be