Applying Fundamental Qualitative CharacteristicsThe following statements describe the usefulness of accounting information.RequiredFor each statement a through f$,$ indicate which fundamental qualitative characteristic best applies $($relevance or faithful representation$),$ and then, which subset of the $($predictive value, confirmatory value, materiality, completeness, neutrality, or free from error$).$StatementFundamental qualitative characteristicFundamental characteristica. A company's Form $10-$K Statement includes two or three yearsRelevancepredictive valueof financial statement history, which is a source ofinformation for investors in forecasting future earnings.b$.$ An investor reviewed the notes to the financial statements toFaithful representationcompletenessassess a company's debt structure. The investor wasinterested in the interest rate on the loans, the terms ofthe notes, future payments, and related debt covenants.c$.$ A company discloses the impact of all recently proposedFaithful representationneutralitystandards on the company's consolidated financial position,results of operations, and cash flows, regardless if it has apositive, negative, or immaterial impact.d$.$ An investor of a company reconciled forecasted sales for theRelevanceconfirmatory valueyear to actual sales for the year, discovering that thecompany outperformed its forecast by $20\%.$e$.$ Although not a historically large amount, a company reportsFaithful representationthe amount of inventory obsolescence due to thesubjectivity in estimating the amount.f$.$ The observation of a physical inventory count is a way thatFaithful representationfree from errorauditors can obtain assurance that the inventory valuerecorded in the financial statements is accurate.