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SOFE SOFA-CFE Exam - Topic 4 Question 121 Discussion

The receivable turnover can be calculated by which of the following formula:
A) Receivable turnover = Net Sales on Account / Average Net Receivables
C) Receivable turnover = Net Sales on Receivables / Average Net Account
D) Receivable turnover = Gross Sales on Receivables / Average Gross Account
B) Receivable turnover = Gross Sales on Account / Average Gross Receivables

SOFE SOFA-CFE Exam - Topic 4 Question 121 Discussion

Actual exam question for SOFE's SOFA-CFE exam
Question #: 121
Topic #: 4
[All SOFA-CFE Questions]

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

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Suggested Answer: A

by Cyndy at Jan 24, 2026, 12:28 PM

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Lavonne
2 hours ago
Exactly! It helps assess cash flow management.
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Ahmed
5 days ago
I remember it as net credit sales over average accounts receivable.
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Jenifer
10 days ago
Yeah, that sounds right! It shows how efficiently we collect.
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Thersa
16 days ago
I think it's sales divided by receivables.
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Howard
2 months ago
Yup, average accounts receivable is key for accuracy!
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Malcom
2 months ago
I thought it was just net sales, not specifically credit sales.
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Janessa
2 months ago
Wait, are we sure that's the only way to do it?
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Marti
3 months ago
Totally agree, that's the standard formula!
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Aileen
3 months ago
It's calculated by dividing net credit sales by average accounts receivable.
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Leeann
3 months ago
The correct formula is net sales divided by average accounts receivable. Nailed it!
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Gearldine
3 months ago
The receivable turnover formula? More like the "how to stay awake during this exam" formula, am I right?
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Rose
3 months ago
Hmm, I'm pretty sure it's net sales divided by the sum of beginning and ending accounts receivable. Gotta love those tricky accounting formulas!
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Maddie
3 months ago
I think it's net sales divided by total accounts receivable. That's what I learned in my accounting class.
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Rochell
4 months ago
The receivable turnover formula is net sales divided by average accounts receivable. Easy peasy!
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Merissa
4 months ago
I’m pretty confident it’s net credit sales over average accounts receivable, but I might mix it up with inventory turnover sometimes.
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Benedict
4 months ago
I feel like there might be a different formula for this, but I can't recall what it is. Was it something with total sales instead of just credit sales?
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Lina
5 months ago
I remember practicing a similar question where we had to calculate the turnover ratio, and I think it was definitely about sales and receivables.
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Solange
5 months ago
I think the receivable turnover is calculated by dividing net credit sales by average accounts receivable, but I'm not completely sure.
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Isreal
5 months ago
I've got this! The receivable turnover is calculated by dividing net credit sales by the average accounts receivable balance. Piece of cake!
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Raina
5 months ago
The receivable turnover formula? I'm drawing a blank on that one. I better quickly scan my textbook to refresh my memory before answering.
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Odette
5 months ago
Okay, let me think this through. I believe the formula is total credit sales divided by average accounts receivable. That should give me the receivable turnover ratio.
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Sharen
6 months ago
Hmm, I'm a bit unsure about the exact formula for receivable turnover. I'll need to review my notes to make sure I have the right approach.
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Diane
6 months ago
I think the receivable turnover is calculated by dividing net credit sales by average accounts receivable. That's the formula I remember from class.
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