Conceptual Framework For Financial Reporting 2-9 24. An accurate representation of a financial item, 25. This enhancing quality assures that there are no omissions that would cause statements to be misleading 26. Although an item such as a wastebasket may be of service for eight years, the total cost of the item may be expensed when it is purchased because the amount is too insignificant to warrant the strict treatment of depreciation over the eight years. 27. Avoid overstatement of net income, assets, and owners" equity, but do not intentionally understate them. 28. Items whose amounts are very small relative to other amounts on the financial statements may be accounted for in the most expedient manner, rather than requiring strict accounting treatment under GAAP. 29. Repair tools are expensed when purchased even though they may be of use for more than one period. CASE 2-1 Purpose: (L.O. 4) This exercise is designed to review the qualitative characteristics that make accounting information useful for decision making purposes (per SFAC No. 8) The qualitative characteristics that make accounting information useful for decision making are as follows: Relevance Neutrality Predictive value Free from error Confirmatory value Comparability Materiality Verifiability Faithful representation Timeliness Completeness Understandability Instructions Fill in the blank to identify the appropriate qualitative characteristic(s) being described in each of the statements below. A qualitative characteristic may be used more than once