Jane Is an Accountant Operating as a Sole Proprietor

question 4

Multiple Choice

Jane is an accountant operating as a sole proprietor. On 1 February she does some work for a client on credit who she invoices for $120. Which of the following represents the effect of this transaction on the accounting equation?

• 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:

Public Relations

The practice of managing the spread of information between an organization and the public.

Edward Bernays

was an American pioneer in the field of public relations and propaganda, widely considered the father of public relations for his groundbreaking work in the early 20th century.

Smoking

The act of inhaling and exhaling the smoke of tobacco or a drug.

Product Placement

is a marketing strategy where branded goods or services are prominently displayed or incorporated into media content, such as films or TV shows, for promotional purposes.