1. A business purchased land in 2017 for $400,000. The value of the land today is $900,000. The company would like to recognize a gain on land of $500,000. If they company recorded the gain which of the following is true?

1) Time period (Periodicity) - violated

2) Separate entity - violated

3) Full disclosure - violated

4) Historical cost - violated

5) Unit-of-Measure - violated

2. Creditors, such as a bank, need financial information

1) to determine whether to buy or sell the company's shares.

2) to plan future investments in research and development.

3) to uncover fraudulent activity by top management.

4) to evaluate the risk of lending to the company.

5) to determine if the company can expand internationally.