[The following information applies to the questions displayed below.] On January 1, Year 1, Niagara Corporation arranges a $6,000 line of credit with Centennial Bank. It accepted the bank's offer of 1% above the prime rate with interest payments on December 31 of each year. All borrowings and repayments are to take place on January 1 of each year.Niagara begins its loan transactions with Centennial Bank by borrowing $2,000 on January 1, Year 1. Which of the following shows the effect of this event on the elements of the financial statements? Assets=Liab.+Stk.EquityRevenue?Expense=Net Inc.Stmt. ofCash FlowsA.2,000=2,000+NANA?NA=NA2,000 IAB.2,000=NA+2,0002,000?NA=2,0002,000 IAC.2,000=NA+2,0002,000?NA=2,0002,000 OAD.2,000=2,000+NANA?NA=NA2,000 FA
A. Option A
B. Option B
C. Option C
D. Option D
Answer: D
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Indicate whether the statement is true or false
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