Required

For each statement a through $f,$ indicate which fundamental qualit. or free from error$).$

Statement

a$.$ A company's Form $10-$K statement includes two or three years of financial statement history, which is a source of information for investors in forecasting future earnings.

b$.$ An investor reviewed the notes to the financial statements to assess a company's debt structure. The investor was interested in the interest rate on the loans, the terms of the notes, future payments, and related debt covenants.

c$.$ A company discloses the impact of all recently proposed standards on the company's consolidated financial position, results of operations, and cash flows, regardless if it has a positive, negative, or immaterial impact.

d$.$ An investor of a company reconciled forecasted sales for the year to actual sales for the year, discovering that the company outperformed its forecast by $20\%.$

e$.$ Although not a historically large amount, a company reports the amount of inventory obsolescence due to the subjectivity in estimating the amount.

The observation of a physical inventory count is a way that auditors can obtain assurance that the inventory value recorded in the financial statements is accurate.

$88F$

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