Glavine Company Repaid a Bank Loan with Cash

Multiple Choice

Glavine Company repaid a bank loan with cash. How should the cash flow from this event be shown on the horizontal financial statements model?

A) As an operating activity that decreases cash, decreases stockholders' equity, and decreases net income.
B) As a financing activity that decreases cash and decreases liabilities.
C) As a financing activity that decreases cash, decreases stockholders' equity, and decreases net income.
D) As an investing activity that decreases cash and decreases liabilities.