Jane Is an Osteopath Operating as a Sole Proprietor

Multiple Choice

Jane is an osteopath operating as a sole proprietor.On 1 February she treats a patient who pays her $120 in cash.The effect of this transaction on the accounting equation is:

A) Increase in cash at bank $120,decrease in liability accounts payable $120
B) Increase in cash at bank $120,increase in liability accounts payable $120
C) Increase in cash at bank $120,increase in asset accounts receivable $120
D) Increase in cash at bank $120,increase in equity $120