Requirement Referring to the qualitative characteristics of accounting information, indicate the fundamental characteristic (relevance or representationally faithful) and its related attribute (confirmatory value, completeness, materiality, neutrality, or predictive value) for each of the following uses of accounting information. Use of Accounting Information This year's reported earnings per share is a. $.50 below analysts' forecasts b. Potential creditors review a company's long- term liabilities footnote to determine that entity's ability to assume additional debt. A corporation discloses both favorable and c. unfavorable tax settlements. A company discloses the write-off of an accounts receivable. The receivable due from a major customer accounts for 35% of the d. company's current assets. A financial analyst computes a company's five-year average cost of goods sold in order e. to forecast next year's profit margin. ***** Fundamental Characteristic Attribute

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Requirement
Referring to the qualitative characteristics of accounting information, indicate the fundamental characteristic (relevance or representationally
faithful) and its related attribute (confirmatory value, completeness, materiality, neutrality, or predictive value) for each of the following uses of
accounting information.
Use of Accounting Information
This year's reported earnings per share is
a. $.50 below analysts' forecasts
Potential creditors review a company's long-
term liabilities footnote to determine that
b. entity's ability to assume additional debt.
A corporation discloses both favorable and
unfavorable tax settlements.
C.
A company discloses the write-off of an
accounts receivable. The receivable due from
a major customer accounts for 35% of the
d. company's current assets.
A financial analyst computes a company's
five-year average cost of goods sold in order
e. to forecast next year's profit margin.
*****
Fundamental Characteristic
Attribute
Transcribed Image Text:Requirement Referring to the qualitative characteristics of accounting information, indicate the fundamental characteristic (relevance or representationally faithful) and its related attribute (confirmatory value, completeness, materiality, neutrality, or predictive value) for each of the following uses of accounting information. Use of Accounting Information This year's reported earnings per share is a. $.50 below analysts' forecasts Potential creditors review a company's long- term liabilities footnote to determine that b. entity's ability to assume additional debt. A corporation discloses both favorable and unfavorable tax settlements. C. A company discloses the write-off of an accounts receivable. The receivable due from a major customer accounts for 35% of the d. company's current assets. A financial analyst computes a company's five-year average cost of goods sold in order e. to forecast next year's profit margin. ***** Fundamental Characteristic Attribute
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