1. a truck costing 47,000 was destroyed during a flood. At the date of the flood, the accumulated depreciation on the truck was $22,000. An insurance cheque for $35,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a

1. Credit to the accumulated depreciation account for $22,000
2. Gain on disposal of $10,000
3. Gain on disposal of $25,000
4. Credit to the truck account of $12,000

2. Notes to the financial statements are required because the most important objective of financial reporting is to

1. Obtain uniformity with foreign countries
2. Provide information to the taxing authorities
3. Provide information useful for decision making
4. Provide information about the board of directors