Company P loaned Company Q $8000 cash on October 1, 2009. The loan carried a one year term. In the December 31, 2009 financial statements, _________________________.

A.Company P would show a cash outflow in the financing activities section of its cash flow statement.

B. Company Q would show a cash inflow in the financing activities section of its cash flow statement.

C. Company P would report a liability related to this transaction.

D. Company Q would report an asset related to this loan.