SOFE Exam SOFA-CFE Topic 9 Question 89 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 89
Topic #: 9

[All SOFA-CFE Questions]

Collection ratio can be calculated by the formula:

ACollection Ratio = 365 / Payable Turnover

BCollection Ratio = 365 + Net Income / Receivable Turnover

CCollection Ratio = 365 / Receivable Turnover

DCollection Ratio = 365 + Net Sales / Receivable Turnover

Show Suggested Answer

Suggested Answer: A

by Clarinda at Jun 02, 2024, 03:22 PM

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Oren

3 days ago

The correct answer is C. The formula to calculate the collection ratio is 365 / Receivable Turnover. This makes sense because the collection ratio represents the average number of days it takes to collect accounts receivable.

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Naomi

16 days ago

Hmm, I see your point. Let's discuss it further to figure out the correct answer.

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Avery

21 days ago

I disagree, I believe the correct answer is D) Collection Ratio = 365 + Net Sales / Receivable Turnover.

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Naomi

24 days ago

I think the answer is C) Collection Ratio = 365 / Receivable Turnover.

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