A company sold its receivables but retains

问题单项选择题

A company sold its receivables but retains the risk associated with bad debts. When reviewing this company, a financial analyst would adjust the company’ s debt-to-equity ratio and its accounts receivable turnover ratio: Debt-to-equity Receivables turnover（）①A. Upward Upward ②B.Downward Upward ③C.Upward Downward

A. ①

B. ②

C. ③

答案

参考答案：C

解析：

The upward adjustment to receivables and short-term debt for receivables sold decrease, the company’ s accounts receivable turnover due to increased accounts receivables but increases leverage ratios due to increased debt.