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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.
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.
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