The following are independent situations. 

1. The results for the economic performance confirm 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 financial 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)