Jane Is an Osteopath Operating as a Sole Proprietor

question 12

Multiple Choice

Jane is an osteopath operating as a sole proprietor.On 1 February she treats a patient on credit who she invoices for $120.The effect of this transaction on the accounting equation is:

• A)Increase in cash at bank $120,decrease in liability accounts payable $120
• B)Increase in equity $120,increase in liability accounts payable $120
• C)Increase in asset accounts receivable $120,increase in equity$120
• D)Increase in cash at bank $120,increase in equity $120

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Definitions:

Depression

A psychological condition marked by a continuous low mood or lack of pleasure in things, resulting in considerable disruption to everyday functioning.

Employment Rate

The percentage of the labor force that is employed, often used as an indicator of the economic health of a region.

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Broadcasted messages aimed at informing the public about important issues or events and influencing public attitudes or behavior for societal benefit.