Please answer the following Accounting questions correctly s

Please answer the following Accounting questions correctly showing all work and steps needed to complete it.

2. Conceptual Framework Review What is the primary objective of accounting information? a. Relevance b. Usefulness c. Understandability d. Consistency e. None of the above 3. Income Statement Now consider these 3 events, which occurred during the year 2015 M-Ross, Inc. sells $5,000 in merchandise M-Ross, Inc. pays employee wages of $3,000 · . M-Ross, Inc. pays rent for a warehouse of $1,000 Create a basic income statement. You may refer to illustration 1.1 in the book as a template. How much profit did Ross Inc. make in 2015? 4. The Accounting Equation 4.1: If assets increase $210,000 during a given period and liabilities increase $65,000 during the same period, stockholders\' equity must a. Increase by 145,000 b. Increase by 275,000 c. Decrease by 275,000 d. Decrease by 145,000 e. None of the above

Solution

Answer to 1:

Primary objective of accounting information: B Usefulness.

Explanation: The primary role of accounting information is to provide useful information for decision-making purposes, it is sometimes referred to as a means to an end, with the end being the decision that is helped by the availability of accounting information.

Answer to 2:

Income Statement
During the year 2015

Sales $ 5000
Less: Wages $ 3000
Less: Rent $ 1000
Net Income to M- Ross Inc. $ 1000

Answer to 3:-

The accounting equation is Assets = Liabilities + Owner\'s Equity

Hence if assets and liabilities both get increased, owner\'s equity will also get increased.

Hence if assets increase by $ 210000 and liabilities by $ 65000, then equity will get increase by $ 145000.(a)