Jane Is an Accountant Operating as a Sole Proprietor

question 44

Multiple Choice

Jane is an accountant operating as a sole proprietor. On 14 February she pays $600 wages in cash to her receptionist for work done during the first half of the month. Which of the following represents the effect of this transaction on the accounting equation?

• A) Decrease in cash at bank $600; decrease in liability accounts payable $600.
• B) Decrease in cash at bank $600; increase in liability accounts payable $600.
• C) Decrease in cash at bank $600; increase in equity $600.
• D) Decrease in cash at bank $600; decrease in equity $600.

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Definitions:

Competitive Advantages

Factors that enable a company to perform better than its rivals in the market, such as superior quality, low cost of production, or exclusive access to resources.

Marketing Mix

The blend of marketing tools that a company uses to pursue its marketing objectives in the target market, traditionally identified as product, price, place, and promotion.

Defensible Position

A competitive advantage or market position that a company can maintain and defend against competitors.

Customer Loyalty

A measure of a customer's willingness to continue buying from or patronizing a brand or company over time.