For each of the situations below, indicate which of the qualitative characteristics listed by the FASB are being violated. The characteristics are: relevance; faithful representation; timeliness; verifiability;

understandability; and comparability.

A. A company’s investors need to file their tax returns in April, but the company does not report its income until May.

B. The company uses an unusual method of recording revenue, but the company does not tell readers what it actually does.

C. A major asset for a company is an investment that is not publicly traded. The company measures this asset using its own methods, which have several assumptions that people outside the company might not agree with.

D. When the company computed its income tax expense, it accidentally multiplied wrong, and the expense it reported was much too big.

E. The company wanted to show low income, so it deliberately overestimated some expenses.

F. When the company computed its expenses, it left out one type of expense.

G. The company included in its report a great deal of information about a very small matter that investors usually do not care about.

H. The company chose to measure certain items in a way that is not helpful to investors who are trying to use information to project future performance.