Q:39) The separate entity arrumption micans: A. It companys financial statements reflect only the busiticss activities of that company and not that of the shareholders, B. each shareholders' activities must be revealed in the financial statements. C. each separals owner's finmeres must be fevealed in the financial statements. D. each separate entity that has a claim on a company/s assets must bo shown in the finaticial statemeuts. Q:40) Your company pays back \$2 million on a loan it had roceised cartier from a bank. How does this ransaction affect the accounting equation? A. Assets rermain unchanged, liabjitities and warcholders' equity both inctease by $2 million. B. Assers decreise by $2 million, Fabilitics decrease by $2 milliog, thareholders' equity remains C. Assets remain unchanged, habilities increase by $2 millioe, contribused capital decreaues by $2 million. D. Arsets dectease by $2 million. Liabilities remain unchamged, contrituted capital decreases by $2