Jane Is an Accountant Operating as a Sole Proprietor

question 48

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. On 10th of February the client pays his account and Jane banks the $120. Which of the following represents the effect of the receipt of cash transaction on the accounting equation for Jane's practice?

• A) Increase in cash at bank $120; increase in equity $120.
• B) Increase in cash at bank $120; decrease in asset accounts receivable $120.
• C) Increase in cash at bank $120; increase in asset accounts receivable $120.
• D) Increase in cash at bank $120; decrease in equity $120.

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Definitions:

Team Coordination

The effective organization and integration of a group's efforts to ensure smooth cooperation and achievement of common goals.

Performance

The act or process of carrying out an action, task, or function, often measured against a known standard or expectation.

First-Time Leader

This refers to an individual who is taking on a leadership role for the first time, navigating the challenges and responsibilities of guiding others.

Self-Leadership

The practice of intentionally influencing your thinking, behavior and actions towards achieving your objectives.