The FASB lists a number of desirable characteristics of information. In practice, a choice of one way of measuring things may make one of these characteristics better, but might make another worse. Explain what factors are made better or worse in each of these choices:

A. The FASB had to choose between having companies record their inventory at historic cost, or what the companies think they can sell the inventories for.

B. The FASB had to decide whether to have companies record an expense in the current year for the amount of their accounts receivable that the companies think they will not collect.

C. The SEC decided to require all public companies to report their annual results within 60 days after year end, even though the companies might be more accurate if they had more time.

D. The FASB requires companies to disclose very complicated information about their trading in certain financial instruments, even though many users are confused by how financial instruments work.

E. The FASB allows companies to choose the method of accounting for inventory that the company’s management feels best reflects its performance, even though other companies in the industry use other methods.