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SOFE Exam SOFA-CFE Topic 1 Question 96 Discussion

Actual exam question for SOFE's SOFA-CFE exam
Question #: 96
Topic #: 1
[All SOFA-CFE Questions]

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

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Suggested Answer: A

by Ezekiel at Sep 10, 2024, 01:42 PM

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Johnetta
5 months ago
Haha, D? Really? Who uses gross sales and gross account for receivable turnover? A is the clear winner here.
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Maybelle
5 months ago
I was going to say C, but then I remembered - it's all about the net numbers, not the gross. A is the one.
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Barney
5 months ago
Option A, for sure. Can't mess up the receivable turnover, that's like accounting 101!
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Marsha
5 months ago
Hmm, let's see... I'd go with B. Gross sales and gross receivables, that's the way to do it, right?
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Aimee
5 months ago
I agree, option A is the way to go. Gotta use the net sales and net receivables for this calculation.
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Amira
5 months ago
Option A is the correct formula. Net sales on account divided by average net receivables gives you the receivable turnover ratio.
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Curtis
4 months ago
You're welcome! It's important to understand how to calculate key financial ratios.
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Berry
5 months ago
Thanks for the clarification!
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Merilyn
5 months ago
That makes sense, thanks for the explanation!
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Tomoko
5 months ago
That's correct! A) Receivable turnover = Net Sales on Account / Average Net Receivables
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Angelica
5 months ago
I think the answer is A) Receivable turnover = Net Sales on Account / Average Net Receivables
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Fernanda
5 months ago
A) Receivable turnover = Net Sales on Account / Average Net Receivables
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Slyvia
6 months ago
Because it makes more sense to use Net Sales on Receivables for the calculation.
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Alpha
6 months ago
Why do you think it's C?
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Slyvia
6 months ago
I disagree, I believe it's C.
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Alpha
6 months ago
I think the answer is A.
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