t yet answered Marked out of 2.00 Flag question Applying Qualitative Characteristics Identify which qualitative characteristic (predictive value, confirmatory value, materiality, completeness, neutrality, or free from error) applies in each of the following situations a through f a.An incorrect useful life for equipment entered into the depreciation system was discovered after year-end. An adjustment to correct depreciation expense was recorded before the financial statements were issued. b.A company's equity investment is classified as a Level 1, Level 2, or Level 3 fairvalue measurement. This allows a potential creditor to assess the level of subjectivity of the fair value measurement. c.The reported cash flows from investing activities is 25% lower this year than what a shareholder had forecasted for this year. d.A shareholder analyzes the future undiscounted lease cash outflows disclosed in a company's financial statements to prepare a 3-year income statement forecast. e.To test for impairment of goodwill, a company obtains an appraisal of the business unit associated with the goodwill from a reputable, independent appraiser. f.A company presents its financial statements, rounded in thousands (000), + +

Applying Qualitative Characteristics Identify which qualitative characteristic (predictive value, confirmatory value, materiality, completeness, neutrality