Liz,after Qualifying at University and Having Several Years Experience Decides

Multiple Choice

Liz,after qualifying at university and having several years experience decides to set up her own dental practice..On 1 March she deposits $25,000 into a bank account she has opened for the practice.The effect of this transaction on the accounting equation is:

A) Increase in assets of $ 25 000; increase in equity of $ 25 000.
B) Increase in assets of $25 000; decrease in equity of $25 000.
C) Increase in assets of $25 000; increase in liabilities of $25 000.
D) Decrease in assets of $25 000; increase in equity of $25 000.