Qualitative characteristics make accounting information useful for decision- making purposes. Identify the qualitative characteristic that is being adopted or not adopted for each of the following situations. You may copy and paste from this list: comparability consistency confirmatory value faithful representation materiality predictive value relevance timeliness understandability verifiability 1. The quality of Walmart's financial information helps its users to correct their prior expectations on share prices.
Qualitative characteristics make accounting information useful for decision- making purposes. Identify the qualitative characteristic that is being adopted or not adopted for each of the following situations. You may copy and paste from this list: comparability consistency confirmatory value faithful representation materiality predictive value relevance timeliness understandability verifiability 1. The quality of Walmart's financial information helps its users to correct their prior expectations on share prices.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Qualitative characteristics make accounting information useful for decision-
making purposes. Identify the qualitative characteristic that is being adopted
or not adopted for each of the following situations.
You may copy and paste from this list:
comparability
consistency
confirmatory value
faithful representation
materiality
predictive value
relevance
timeliness
understandability
verifiability
1. The quality of Walmart's financial information helps its users to correct
their prior expectations on share prices.
2. Walmart is the only company in its industry to depreciate its plant assets
on a straight-line basis.
3. Walmart switches from first-in first-out (FIFO) to average-cost (AVCO)
and then back to FIFO over a 2-year period.
4. Walmart does not issue its first-quarter report until after the second-
quarter results are reported. (Do not use relevance.)
5. Walmart has attempted to determine the replacement cost of its
inventory. Three different valuators have produced significantly different
amounts for the inventory value. The CFO decided to report the middle
value for external reporting purposes.
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