SOFE Exam SOFA-CFE Topic 4 Question 83 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 83
Topic #: 4

[All SOFA-CFE Questions]

The receivable turnover can be calculated by which of the following formula:

AReceivable turnover = Net Sales on Account / Average Net Receivables

BReceivable turnover = Gross Sales on Account / Average Gross Receivables

CReceivable turnover = Net Sales on Receivables / Average Net Account

DReceivable turnover = Gross Sales on Receivables / Average Gross Account

Show Suggested Answer

Suggested Answer: A

by Lashandra at Mar 18, 2024, 12:00 AM

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William

10 months ago

Interesting, but I'll stick with A) for now until we confirm the correct formula.

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Leonie

10 months ago

I think it's D) Receivable turnover = Gross Sales on Receivables / Average Gross Account because that's what I learned in class.

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William

11 months ago

Hmm, I see. I think A) makes more sense because we're looking at net sales and net receivables.

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Val

11 months ago

I'm not sure, but I believe it might be C) Receivable turnover = Net Sales on Receivables / Average Net Account.

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William

11 months ago

I think the formula is A) Receivable turnover = Net Sales on Account / Average Net Receivables.

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Eura

12 months ago

Actually, I think it's better to use gross sales on account to calculate receivable turnover. So, B) Receivable turnover = Gross Sales on Account / Average Gross Receivables.

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Haley

12 months ago

I believe the answer is C) Receivable turnover = Net Sales on Receivables / Average Net Account.

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Rex

12 months ago

I agree with User1, it makes sense to calculate receivable turnover based on net sales on account.

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Niesha

12 months ago

I think the formula is A) Receivable turnover = Net Sales on Account / Average Net Receivables.

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