For each of the following independent situations, indicate which qualitative characteristic was violated.

Perfect Company signed a legal agreement to finance the purchase of equipment. The equipment required annual payments of $10,000 for five years. The agreement referred to the payments as rental payments. The company records rent expense when the annual payments are made.

Answer 1

Gold Mining Ltd is the only company in the mining industry that uses the straight-line method to depreciate its mining equipment.	Answer 2
Watson Company used terminology in its financial statements that is not commonly used in the financial reporting and did not provide explanations of the terminology.	Answer 3
Precise Ltd., a multinational drilling company, reported separately its paper, paper clips and pens in the balance sheet rather than reporting a single line for office supplies. Total office supplies were $3,000.	Answer 4
Echo Ltd intentionally recorded the revenue in 2020 for sales made in 2021 to ensure that management would receive their bonuses, which were based on profits.	Answer 5
The company reported its inventory at a net realizable value which is overstated and is disagreed by its auditors.