Jane Is a Painting Contractor Operating as a Sole Proprietor

question 2

Multiple Choice

Jane is a painting contractor operating as a sole proprietor. On 15 May she completes a job for a client who pays her $1500 in cash. The effect of this transaction on the accounting equation is?

• A) Cash at bank increases by $1500; Accounts payable decreases by $1500.
• B) Cash at bank increases by $1500; Equity increases by $1500.
• C) Cash at bank increases by $1500; Accounts receivable decreases by $1500.
• D) Cash at bank increases by $1500; Accounts payable increases by $1500.

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Definitions:

Dual Circuit Foot Valve

A valve used in brake systems, offering two separate channels for brake fluid to ensure a backup in case one fails.

Relay Section

A segment of an electrical circuit designed to isolate and manage the flow of power through the use of relays.

Primary Piston

The main piston in a hydraulic or pneumatic system that is first to receive pressure from the fluid or air, translating that pressure into mechanical force.

Relay Piston

A component within a hydraulic or pneumatic system that transmits force from the relay valve to perform work, such as moving other parts.