Jane is an accountant operating as a sole proprietor. On 1 February she does some work for a client who pays her $320 in cash. Which of the following represents the effect of this transaction on the accounting equation?

Select one:

a. Increase in cash at bank $320; increase in equity $320.

b. Increase in cash at bank $320; increase in liability accounts payable $320.

c. Increase in cash at bank $320; increase in asset accounts receivable $320.

d. Increase in cash at bank $320; decrease in liability accounts payable $320.