Your Company Pays Back $2 Million on a Loan It

Multiple Choice

Your company pays back $2 million on a loan it had obtained earlier from a bank.

A) Assets decrease by $2 million; liabilities and stockholders' equity are both unchanged.
B) Assets decrease by $2 million, liabilities decrease by $2 million, and stockholders' equity is unchanged.
C) Assets decrease by $2 million and liabilities increase by $2 million.
D) Assets decrease by $2 million, liabilities are unchanged, and stockholders' equity decreases by $2 million.