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 and Shareholders' Equity both fall $2 million.
C) Assets,Liabilities,and Shareholders' Equity are unchanged.
D) Shareholders' Equity rises $2 million and Liabilities fall $2 million.