During the Year,the Company Recorded Services Provided to Customers on Account.What

Multiple Choice

During the year,the company recorded services provided to customers on account.What effect will this transaction have on the debt-to-assets and times interest earned ratios?

A) The debt-to-assets ratio will decrease and the times interest earned will increase.
B) The debt-to-assets ratio will increase and the times interest earned will not change.
C) Both ratios will decrease.
D) Both ratios will increase.