Lefton Company made a $2 million sale on account. How will this transaction affect the current ratio and the debt ratio?
A) It improves the current ratio and has no effect on the debt ratio.
B) It improves both the current ratio and the debt ratio.
C) It hurts the current ratio and has no effect on the debt ratio.
D) It hurts both the current ratio and the debt ratio.
Correct Answer:
Verified
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