a). A company recorded sales on account of $300 and related cost of goods sold of $200. Due to this transaction, which of the following is always true?

Multiple Choice

• The asset turnover ratio was not affected.

• None of the other statements is true.

• The ROA ratio decreased.

• The current ratio was not affected.

• The gross profit margin (also called gross profit percentage) increased.

b). A company recorded advertising expense of $10 incurred but not paid for. Due to this transaction, which of the following is always true?

Multiple Choice

• Gross profit margin (also called gross profit percentage) was not affected.

• None of the other statements is true.

• The ROA ratio was not affected.

• The current ratio decreased.

• The asset turnover ratio increased.