单选题
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
【正确答案】
C
【答案解析】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.