M5-4 (a) Determining the Effects of Transactions on Financial Ratios 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 net profit margin decreased. None of the other statements is true. The asset turnover ratio was not affected. The current ratio increased. The gross profit margin (also called gross profit percentage) decreased. M5-4 (b) Determining the Effect of Transactions on Financial Ratios 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 None of the other statements is true, The current ratio decreased. The ROA ratio was not affected. O The asset turnover ratio increased. Gross profit margin (also called gross profit percentage) was not affected