Below is a list of balance sheet classifications and fundamental qualitative characteristics. Match the appropriate letter to each account name or statement. A letter may be used more than once or not at all. The first two are completed as examples for you. All questions must be answered on-line in the space provided. You can click on a grid to make the grid larger on your screen. Balance sheet classification or qualitative characteristic Letter A Current assets B D E F G H Capital assets Current liabilities Long-term liabilities Shareholders' equity Comparability Faithful representation Materiality Neutrality Predictive value Relevance Timeliness Understandability Verifiability 1 J K L M N Account name or statement characteristic. Example: Cash Example: Accounting information is prepared on the assumprion that users have a reasonable understanding of accounting and general business and economic conditions Accounting information about one company can be evaluated against the accounting information from another company. M Unearned or deferred revenue Accounting information is included if its omission or misstatement could influence the economic decisions of users. This is an important component of relevance. Accounts receivable Accounting information about a company can be confirmed by two or more users to be a faithful representation Accounts payable Accounting information cannot be selected, prepared, or presented to favour one set of interested users over another. Accumulated depreciation, equipment Accounting information must be available to decision makers before it loses its ability to influence their decisions. Retained earnings