For each of the following independent situations, indicate which qualitative characteristic was violated. The company reported its inventory at a net realizable value which is overstated and is disagreed by its auditors. 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. Gold Mining Ltd is the only company in the mining industry that uses the straight-line method to depreciate its mining equipment. 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. 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. 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. Faithful representation + Understandability Choose... Comparability Faithful representation Choose... " "