Exercise $1-8($Static$)$ Qualitative characteristics $[$LO$1-7]$

The conceptual framework indicates the desired fundamental and enhancing qualitative characteristics of accounting informati Several constraints impede achieving these desired characteristics. Answer each of the following questions related to these characteristics and constraints.

Which component would allow a large company to record the purchase of a $$120$ printer as an expense rather than capitalizing the printer as an asset?

ces

Donald Kirk, former chairman of the FASB, once noted that $*..$ there must be public confidence that the standard$-$setting system is credible, that $$ selection of board members is based on merit and not the influence of special interests $..$ "Which characteristic is implicit in Mr$.$ Kirk's statement?

Comparability

$3.$ Allied Appliances, Incorporated, changed its revenue recognition policies. Which characteristic is jeopardized by this change?

Consistency

$4.$ National Bancorp, a publicly traded company, files quarterly and annual

financial statements with the SEC. Whickichacteristicis role

Cost effectiveness financial statements with the SEC. Which characteristic is relevant to the timing of these periodic filings?

Faithful representation

$5.$ In general, relevant information possesses which qualities?

$6.$ When there is agreement between a measure or description and the phenomenon it purports to represent, information possesses which characteristic?

$7.$ Jeff Brown is evaluating two companies for future investment potential. Jeff's task is made easier because both companies use the same accounting methods when preparing their financial statements. Which