The qualitative characteristics outlined in the FASB's conceptual framework include: Faithful Representation Predictive value Materiality Neutrality Freedom from e Required: Select the qualitative characteristic that best applies to each of the following independent situations. (Note: Each of the 10 characteristics is used once and only once.) In deciding whether to invest in SoutArlies or American Alines investors evalue the companes 2 To provide the most reliable infermation about future sales Wamarts management uses an appropiate process to estimate the decline in inventory value each year In deciding whether so loan money. Wells Fargo uses balance sheet information to fonecast he probability ot bankruptcy 4 IBM is required to issue public financial statements within 60 days of its yearend Employees of Starbucks can use the company's financial statements to analyze the efficiency with which management has conducted operations over the past year When first requining firms to prepare a statement of cash fows, the FAS8's intent was not to discourage or promate investment in the automobile industry When Harley-Davidson reports revenue for the year, the amount includes saies not oniy in the Uted States bu 5. also those outside the Unted Stabes 8 The amount of total assets reported by General Milis can be substantiated by its audons The Cheesecake Factory prepares its balance sheet in a clear format using basic accournting terminology to allow users to easily compgrehend the company's assets, liabilities, and stockholders equity. Target prepays $600 to rent a post office box for the nexsix monts and decides to recond the ntepayment to Rent Expense (instead of Prepaid Rent) in the current month 10 References eBook & Resources Matching Leaning Objective 01-07 Explain the nature of the conceptual framework used to develop generalily accepted Oifficulty 2 Medium