Green Caterpillar Garden Supplies Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first and second years of operation.

Use the information given in the balance sheet to answer the question that follows.

Green Caterpillar Garden Supplies Inc. Balance SheetYears ending December 31 Year 2Year 1ASSETS Current assets: Cash and equivalents$46,125$36,900Accounts receivables$16,875$13,500Inventory$49,500$39,600Total current assets$112,500$90,000Net fixed assets: Net plant and equipment$137,500$110,000Total assets$250,000$200,000 LIABILITIES AND EQUITY Current liabilities: Accounts payable$0$0Accruals$2,344$0Notes payable$13,281$12,500Total current liabilities$15,625$12,500Long-term bonds$46,875$37,500Total debt$62,500$50,000Common equity: Common stock$121,875$97,500Retained earnings$65,625$52,500Total common equity$187,500$150,000Total liabilities and equity$250,000$200,000

Green Caterpillars accumulated owed financial obligations decreased from Year 1 to Year 2.

This statement is (TRUE/INCORRECT) , because:

A. The accounts payable account remained $0 for both Years 1 and 2.

B. Accruals actually increased from $0 in Year 1 to $2,344 at the end of Year 2.

C. Notes payable actually increased from $13,281 to $12,500 between Years 1 and 2.

D. long-term bonds decreased from $13,281 at the end of Year 1 to $12,500 by the end of Year 2.