Balance sheet classification or qualitative characteristic Letter A Current assets B D E E F Capital assets Current liabilities Long-term liabilities Shareholders' equity Comparability Faithful representation Materiality Neutrality Predictive value G H 1 J K Relevance L M Timeliness Understandability Verifiability N Accounting information about one company can be evaluated against the accounting information from another company. Unearned or deferred revenue Accounting information is included if its omission or misstatement could influence the economic decisions of users. This is an important component of relevance. Accounts receivable Accounting information about a company can be confirmed by two or more users to be a faithful representation Accounts payable Accounts payable Accounting information cannot be selected, prepared, or presented to favour one set of interested users over another Accumulated depreciation, equipment Accounting information must be available to decision makers before it loses its ability to influence their decisions. Retained earnings