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).