RELIABILITY PRINCIPLE OF ACCOUNTING
ALL ABOUT ACCOUNTING :- 16th BLOG ☆☆☆☆☆ACCOUNTING☆☆☆☆☆ Hi freinds 🙏., Today's discuss 11th accounting principle. So let's discuss... ★ RELIABILITY :- Accounting reliability refers to whether financial information can be verified and used consistently by investors and creditors with the same results. Basically, reliability refers to the trustworthiness of the financial statements. The accounting rule of the reliability principle concerns the financial information of a business, and states that the information presented in the accounting records and statements should be the most accurate and relevant information available. * For example :- Company ABC LTD. is being sued for damages by Company XYZ LTD. If Company ABC LTD. loses the case, they will have to pay a significant amount in settlement money, which could threaten the financial stability of their company. * Types of reliability :- There are mainly two types of reliability – internal and extern