The following are independent situations. 1. The results for the economic performance confirms Sams predictions about the
Question:
The following are independent situations.
1. The results for the economic performance confirms Sam’s predictions about the company.
2. The manager records the cost of a new building as an asset.
3. A company prepares notes to the fi nancial statements to ensure all relevant information is given to users.
4. After studying the financial statements, Lori determines that the company’s earnings will increase 1% to 2% over the next two years.
Instructions
For each of the above situations, indicate which component of qualitative characteristics applies (predictive value, feedback value, neutrality, free from material error, or completeness).
Step by Step Answer:
Accounting Principles Volume 2
ISBN: 978-1119502555
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak