Jane Is an Accountant Operating as a Sole Proprietor

question 10

Multiple Choice

Jane is an accountant operating as a sole proprietor. In January she purchases for $540 some new furniture for her office. The purchase is made on credit. Which of the following represents the effect of this transaction on the accounting equation?

• A) Increase in the asset furniture $540; increase in the liability accounts payable $540.
• B) Increase in the asset furniture $540; decrease in the asset accounts receivable $540.
• C) Increase in the asset furniture $540; increase in equity $540.
• D) Increase in the asset furniture $540; increase in the asset accounts receivable $540.

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Definitions:

Generalization

The process of applying findings from specific instances to broader contexts, or the tendency to apply broad concepts to specific instances.

Observational Learning

A learning process through watching the behaviors of others and the outcomes of those behaviors, not through direct experience.

Spark

Typically refers to a small but bright flash of fire or electricity, often used metaphorically to describe the initiation or inspiration of something.

Spontaneous Recovery

The reappearance of a previously extinguished response in the absence of further conditioning.