A Company Borrows $2 Million from Its Bank

Multiple Choice

A company borrows $2 million from its bank.It then uses this money to buy equipment.How does this transaction affect the accounting equation?

A) Assets and Liabilities both rise $2 million.
B) Assets increase by $2 million and Liabilities decrease by $2 million.
C) Assets decrease by $2 million and Liabilities increase by $2 million.
D) Assets remain unchanged and Liabilities increase by $2 million.