Requirement

Referring to the qualitative characteristics of accountinginformation, indicate the fundamental characteristic(relevance or representationallyfaithful) and its related attribute(confirmatory value,completeness, materiality,neutrality, or predictivevalue) for each of the following uses of accounting information. (Some uses may have more than one fundamental characteristic and related attribute. If a box is not used in the table leave the boxempty; do not select alabel.)

Use of Accounting Information

Fundamental Characteristic

Attribute

a.

This year's reported earnings per share is $.50 below analysts' forecasts.

b.

Potential creditors review a company's long-term liabilities footnote to

determine that entity's ability to assume additional debt.

c.

A corporation discloses both favorable and unfavorable tax settlements.

d.

A company discloses the write-off of an accounts receivable. The

receivable due from a major customer accounts for 35% of the company's current assets.

e.

A financial analyst computes a company's five-year average cost of

goods sold in order to forecast next year's profit margin.