For each situation listed, indicate by letter the appropriate qualitative characteristic(s) or accounting concept(s) applied. A letter may be used more than once, and more than one characteristic or concept may apply to a particular situation.

1. Goodwill is recorded in the accounts only when it arises from the purchase of another entity at a price higher than the fair market value of the purchased entit} 's tangible assets.

2. Land is valued at cost.

3. All payments out of petty cash are debited to Miscellaneous Expense.

4. Plant assets are classified separately as land or buildings, with an accumulated depreciation account for buildings.

5. Periodic payments of \($1,500\) per month for services of H. Hay, who is the sole proprietor of the company, are reported as withdrawals.

6. Small tools used by a large mantifacturing firm are recorded as expenses when purchased.

7. Investments in equit}' securities are initially recorded at cost.
8. A retail store estimates inventor}', rather than taking a complete physical count, for purposes of preparing monthly fmancial statements.

9. A note describing the company's possible liability in a lawsuit is included with the financial statements even though no formal liability exists at the balance sheet date.
10. Depreciation on plant assets is consistently computed each year by the straight-line method.

a. Understandability

b. Verifiability

c. Timeliness

d. Representational faithfulness

e. Neutrality

f. Relevance

g. Going concern

h. Economic entity

i. Historical cost

J. Measurability

k. Materialiy

l. Comparability