The qualitative characteristics outlined in the FASB's conceptual framework include tal Characteristics Enhancing Characteristics Relevance Confirmatory value Predictive value Materiality Compleleness Neutrality Freedom from error Comparability Verifiability Understandability Required: Select the qualitative characteristic that best applies to each of the following independent situations. (Note Each of the 10 characteristics is used once and only once.) 1 In deciding whether to invest in Southwest Airlines or American Airlines, investors evaluate the companies income statements 2 To provide the most reliable information about future sales, Walmarts management uses an appropriate process to estimate the decline in inventory value each year In deciding whether to loan money, Wells Fargo uses balance sheet information to forecast the probability of 3. bankruptcy 4. 1BM is required to issue public financial statements within 60 days of its year-end 5 Employees of Starbucks can use the company's financial statements to analyze the efficiency with which s When first requiring firms to prepare a statement of cash flows, the FASB's intent was not to discourage or management has conducted operations over the past year promote investment in the automobile industry When Harley-Davidson reports revenue for the year the amount includes sales not only in the United States but also those outside the United States 8 The amount of total assets reported by General Mills can be substantiated by its auditors The Cheesecake Factory prepares its balance sheet in a clear format using basic accounting terminology to allow users to easly comprehend the company's assets, liabilities, and stockholders' equity 1o Target prepays $600 to rent a post office box for the next sie months and decides to record the entee payment to Rent Expense (instead of Prepaid Rent) in the current month