Chapter 2, Problem 2.2E

Qualitative Characteristics. 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	Fundamental Characteristic	Attribute
a. This year’s reported earnings per share is $.50 below analysts’ forecasts.	_______________	_______________
b. Potential creditors review a company’s longterm liabilities footnote to determine that entity’s ability to assume additional debt.	_______________	_______________
c. A corporation discloses both favorable and unfavorable tax settlements.	_______________	_______________
d. A company discloses the write-off of an accounts receivable. The receivable due from a major customer accounts for 35% of the company’s current assets.	_______________	_______________
e. A financial analyst computes a company’s five-year average cost of goods sold in order to forecast next year’s gross profit margin.	_______________	_______________