Describe the four enhancing qualitative characteristics and identify conflicts where possible trade-offs may occur in trying to maximize these characteristics

Describe the four enhancing qualitative characteristics and identify conflicts where possible trade-offs may occur in trying to maximize these characteristics.

(II) Identify which of the five financial statement elements applies to each item described below:

a. A cash dividend is declared and paid to the shareholders.

b. Cash is used to purchase a machine that will be used in the production process over the next five years.

c. Products are sold to customers on 30-days’ credit

d. Income taxes are calculated based on a company’s profit. The taxes will be paid next year.

e. A customer makes a deposit on a special order that will not be manufactured until next year.

f. A bill for electricity used in the current month is received but not payable until the following month.

g. A shareholder invests money in a business in exchange for issued shares.

h. A shareholder invests money in a business by making a loan with commercial terms to the business.

i. An insurance settlement is received for a fully depreciated asset that was destroyed in a fire. j. An allowance for doubtful accounts is established based on estimates of future uncollectible accounts.