In Schwesser concept checkers for Lont-Term Liabs. and Leases question 16 states “For a company that has sold recievables but retained the credit risk, which of the following is least likely to require adjustment by an anlyst?” A. Current Ratio B. Inventory Turnover C. Debt-to-Equity The answer is B, which i understand, I also understand that the recievable turnover and debt-to-equity need to be adjusted. But i do not understand why the current ratio needs to be adjusted. If you have $10K cash and $10K in rec. and $15K in current liabilities your current ratio is 1.33. (10K+10K/15K) If you sell your $10K in recievables for $10K in cash you will still have the same curent ratio. $20K cash/$15K current liabs.