Knowledge Check 01 Boyd Corporation borrows $300,000 from a bank on March 1, Year 1, by signing a 6 percent, nine-month note for the amount borrowed plus accrued interest due nine months later. On issuance date, this transaction:

Multiple Choice

A. increases assets and decreases liabilities.

B. decreases assets and decreases liabilities.

C. decreases assets and increases liabilities.

D. increases assets and increases liabilities.