Helen Decides to Open Her Own Ice-Cream Store and Deposits

Multiple Choice

Helen decides to open her own ice-cream store and deposits $25 000 into her new business bank account on 1 October. The effect of this transaction on the accounting equation is:

A) Assets increase by$25 000; Equity increases by $25 000.
B) Assets increase by $25 000; Equity decreases by $25 000.
C) Assets increase by $25 000; Liabilities increase by $25 000.
D) Assets decrease by $25 000; Equity decreases by $25 000.