MENU
Collection ratio can be calculated by the formula:
Suggested Answer: A
Get Premium SOFA-CFE Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
37 comments · newest first
JO
Johnna
10 months ago
Not sure about this, seems too straightforward.
AR
Arthur
11 months ago
Definitely C! I've used that formula before.
BR
Brice
11 months ago
Wait, is it really that simple?
TE
Terrilyn
11 months ago
I thought it was the payable turnover one, but I guess not.
ST
Stacey
11 months ago
Collection Ratio = 365 / Receivable Turnover is correct!
GE
Geraldine
12 months ago
I definitely recall that the collection ratio is calculated using receivable turnover, but I can't remember if it's option C or D.
JU
Justine
12 months ago
I feel like I might be mixing up the terms here. Wasn't there something about net income in one of the practice questions?
MA
Mariko
12 months ago
I remember practicing a similar question, and I think the correct formula involves dividing 365 by the receivable turnover.
CA
Camellia
1 year ago
I think the collection ratio is related to receivables, but I'm not sure if it's 365 divided by receivable turnover or something else.
DA
Davida
1 year ago
I'm a little confused by the different options here. Is the collection ratio just 365 divided by Receivable Turnover, or does it involve other factors like Net Income or Net Sales? I'll have to review my notes to be sure.
SH
Sharita
1 year ago
Okay, let me think this through. The collection ratio is related to how quickly a company collects on its receivables, so it makes sense that it would involve the Receivable Turnover. I'm going to go with option C.
GE
Georgiann
1 year ago
Hmm, I'm not sure about this one. I know the collection ratio has to do with receivables, but I can't quite remember the exact formula.
ER
Erasmo
1 year ago
This looks straightforward, I think the formula is just 365 divided by the Receivable Turnover.
FE
Fernanda
1 year ago
Hmm, I'm a bit unsure about this one. The question mentions a lot of different responsibilities - establishing, documenting, providing resources, demonstrating commitment. I'll need to think carefully about which role would be responsible for all of those.
GE
Geoffrey
1 year ago
Option A sounds like it's describing a SOAP-based architecture, where each service has its own contract. Option B seems to be describing a REST-based architecture with a shared uniform contract. I'm pretty confident those are the correct answers.
YE
Yen
1 year ago
This seems straightforward, I think the answer is A.
JA
Jacqueline
1 year ago
This question seems straightforward, but I want to make sure I understand the key concepts before selecting an answer.
AL
Aliza
1 year ago
As an accountant, I'm offended that anyone would think the collection ratio has anything to do with net income or net sales. It's strictly a function of the receivable turnover.
JE
Jeannine
1 year ago
User 3: So, the correct answer is C) Collection Ratio = 365 / Receivable Turnover.
RI
Ricki
1 year ago
User 2: I think you're right, it's definitely not related to net income or net sales.
EL
Elly
1 year ago
User 1: I agree, the collection ratio is calculated by dividing 365 by the receivable turnover.
RE
Remona
1 year ago
Haha, I almost fell for that one with the 'Net Income' and 'Net Sales' options. But you can't trick me, the collection ratio is all about the receivables!
AL
Alayna
1 year ago
C) Collection Ratio = 365 / Receivable Turnover
AR
Arlette
1 year ago
B) Collection Ratio = 365 + Net Income / Receivable Turnover
JO
Jordan
1 year ago
A) Collection Ratio = 365 / Payable Turnover
BO
Boris
1 year ago
The formula is Collection Ratio = 365 / Receivable Turnover.
LE
Leandro
1 year ago
Yeah, it's definitely not about net income or net sales.
BE
Bernardo
1 year ago
I agree, the collection ratio is calculated using the receivable turnover.
DE
Deandrea
1 year ago
I initially thought it was A, but then I realized that the payable turnover is not relevant to calculating the collection ratio. The key factor is the receivable turnover.
OR
Oren
1 year 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.
GA
Gaynell
1 year ago
No problem! It's important to understand the formula for calculating collection ratio.
ER
Ernest
1 year ago
Oh, I see. That makes sense. Thanks for clarifying.
JO
Johana
1 year ago
Actually, the correct answer is C) Collection Ratio = 365 / Receivable Turnover
OR
Oretha
1 year ago
I think the answer is A) Collection Ratio = 365 / Payable Turnover
NA
Naomi
2 years ago
Hmm, I see your point. Let's discuss it further to figure out the correct answer.
AV
Avery
2 years ago
I disagree, I believe the correct answer is D) Collection Ratio = 365 + Net Sales / Receivable Turnover.
NA
Naomi
2 years ago
I think the answer is C) Collection Ratio = 365 / Receivable Turnover.