Fullerton Co

Multiple Choice

Fullerton Co.has the following information from its accounting records: If Fullerton uses cash of $10,000 to pay a current liability,its:

A) current ratio increases and its debt-to-assets ratio increases.
B) current ratio increases and its debt-to-assets ratio decreases.
C) current ratio decreases and its debt-to-assets ratio increases.
D) current ratio decreases and its debt-to-assets ratio decreases.