67. Which of the following properly describes the impact on the financial statements when a company borrows $20,000 from a local bank?
A. Net income increases $20,000.
B. Assets decrease $20,000.
C. Stockholders' equity increases $20,000.
D. Liabilities increase $20,000.
The amount borrowed needs to be repaid, and the local bank is a creditor; therefore, liabilities are increased by the amount of the loan.