Answers in BOLD
1. On Jan 31st, an entity's balance sheet showed total assets of $750 and liabilities of $250. Owner's equity at Jan 31st was: 500, 1,000, 750 or 250 ? 2. An engineering consultant provided $500 of services to a client. The client paid $100 when the bill was submitted and will pay the balance within a week. Record journal entry for cash, fees receivable and fee revenue, or fee revenue, fees receivable and cash, or cash and fee revenue, or cash, fee revenue and fees receivable. Which is correct? Show amounts for each column.
Cash Dr 100
Fee Receivable Dr 400
Fee Revenue Cr 500
3. Which of the following is not an example of a decision or informed judgment that a potential employee could make from accounting information? a. personnel turnover statistics (hiring and terminations) b. probability of the company's ability to make profit sharing plan contributions in the future c. assessment of the risk that the company may become bankrupt in the near future d.The extent of the company's commitment to a research program