QUESTION 1Qualitative characteristics make accounting information useful for decision-makingpurposes. Identify the qualitative characteristic that is being adopted or not adopted foreach of the following situations.You may copy and paste from this list:comparabilityconsistencyconfirmatory valuefaithful representationmaterialitypredictive valuerelevancetimelinessunderstandabilityverifiability1. The quality of Walmart's financial information helps its users to correct their priorexpectations on share prices.2. Walmart is the only company in its industry to depreciate its plant assets on astraight-line basis.3. Walmart switches from first-in first-out (FIFO) to average-cost (AVCO) and then backto FIFO over a 2-year period.4. Walmart does not issue its first-quarter report until after the second-quarter resultsare reported. (Do not use relevance.)5. Walmart has attempted to determine the replacement cost of its inventory. Threedifferent valuators have produced significantly different amounts for the inventoryvalue. The CFO decided to report the middle value for external reporting purposes.

Qualitative characteristics: The financial information of the company is used by different users.…

e quality of Walmart's financial information helps its users to correct their prior pectations on share prices. almart is the only company in its industry to depreciate its plant assets on a aight-line basis. almart switches from first-in first-out (FIFO) to average-cost (AVCO) and then back FIFO over a 2-year period. almart does not issue its first-quarter report until after the second-quarter results e reported. (Do not use relevance.) almart has attempted to determine the replacement cost of its inventory. Three ferent valuators have produced significantly different amounts for the inventory lue. The CFO decided to report the middle value for external reporting purposes.

e quality of Walmart's financial information helps its users to correct their prior pectations on share prices. almart is the only company in its industry to depreciate its plant assets on a aight-line basis. almart switches from first-in first-out (FIFO) to average-cost (AVCO) and then back FIFO over a 2-year period. almart does not issue its first-quarter report until after the second-quarter results e reported. (Do not use relevance.) almart has attempted to determine the replacement cost of its inventory. Three ferent valuators have produced significantly different amounts for the inventory lue. The CFO decided to report the middle value for external reporting purposes.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter1: Accounting As A Tool For Managers

Section: Chapter Questions

Problem 3EB: Companies need to report both monetary and nonmonetary data and information. A. Define these two...

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