If a US Firm Borrows from an American Bank and Then Converts

Multiple Choice

If a U.S. firm borrows from an American bank and then converts that money to euros to buy French wine, it will be accounted for as a(n) _____ account.

A) subtraction from the U.S. capital
B) addition to the U.S. current
C) subtraction from the U.S. current
D) addition to the U.S. capital