If a Company Bought Inventory on Account, What Would Be

Multiple Choice

If a company bought inventory on account, what would be the effect on the company's current ratio and debt-to-equity ratio?
$\begin{array}{ll}&\text { Current } & \text { Debt-to-Equity } \\&\text { Ratio } & \text { Ratio } \\A.&\text { increase } & \text { increase } \\B.&\text { increase } & \text { decrease } \\C.&\text { decrease } & \text { increase } \\D.&\text { decrease } & \text { decrease }\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D