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