When a Company Lends Cash to a Customer Who Signs

Multiple Choice

When a company lends cash to a customer who signs a promissory note:

A) net assets decrease for the current accounting period,but increase when the money is repaid.
B) net assets increase in the current accounting period but revenues increase when the money is repaid.
C) net assets increase and liabilities increase when the transaction occurs.
D) net assets and net income do not change when the transaction occurs.