Liz, After Qualifying at University and Having Several Years' Experience

question 13

Multiple Choice

Liz, after qualifying at university and having several years' experience decides to set up her own dental practice. On 1 March she deposits $25 000 into a bank account she has opened for the practice. Which of the following represents the effect of this transaction on the accounting equation?

• A) Increase in assets of $25 000; increase in equity of $25 000.
• B) Increase in assets of $25 000; decrease in equity of $25 000.
• C) Increase in assets of $25 000; increase in liabilities of $25 000.
• D) Decrease in assets of $25 000; increase in equity of $25 000.

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Definitions:

Separation Anxiety

A disorder in which an individual experiences excessive fear or anxiety regarding separation from home or an attachment figure.

Encopresis

A condition in children characterized by involuntary defecation in inappropriate places, beyond the age at which toilet training is usually completed.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by patterns of inattention, hyperactivity, and impulsivity.

Behavioral Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through reinforcement strategies.