Companies use different sources for financing their assets-internal resources as well as external resources, and debt (borrowed) as well as equity funds. Aunt Dottie's Linen Inc. reported no long-term debt in its most recent balance sheet. A company with no debt on its books is referred to as: O A company with leverage, or a leveraged company O A company with no leverage, or an unleveraged company Which of the following is true about the leveraging effect? O Interest on debt can be deducted, leading to higher taxable income and a lower available operating income. O Interest on debt can be deducted, leading to lower taxable income and lower taxes