SOFE SOFE Certifications SOFE-CFE Questions & Answers

• Question 301:

  The tax effect of the 20 percent adjustment to what deduction depends on underwriting decisions?

  A. Earned Premium Reserve

  B. Alternative minimum tax

  C. Unearned Premium Reserve

  D. Strategic reserve

  Correct Answer: C

• Question 302:

  If a coverage dispute should arise at some future time, the contract documentation can prove to be invaluable during:

  A. reinsurance distribute process

  B. dispute resolution process

  C. contractual distribute process

  D. Legal agreement process

  Correct Answer: B

• Question 303:

  When each situation must be evaluated on its own, in essence, the end can justify the means, this is referred to as:

  A. Situational ethics

  B. Situational behavior

  C. Situational principle

  D. Situational hotline

  Correct Answer: A

• Question 304:

  According to Wheelwright; branch of philosophy which is the systematic study of refilective choice, of the standards of right and wrong by which a person is to be guided, and of the goods toward which it may ultimately be directed id called:

  A. Ethics

  B. Morality

  C. Legality

  D. Saintliness

  Correct Answer: A

• Question 305:

  What advocates that there are concrete ethical principles that cannot be violated?

  A. Utilitarian principle

  B. Imperative principle

  C. Functional activity

  D. Serviceable principle

  Correct Answer: B

• Question 306:

  What is considered by most professionals to be the cornerstone of an employee reporting program?

  A. Focus line

  B. Report Foundation

  C. Hotline

  D. Imputed Reports

  Correct Answer: C

• Question 307:

  Which of the following is NOT the type of hotline?

  A. Part-time hotline

  B. Full-time hotline

  C. Third-party hotline

  D. Detective hotline

  Correct Answer: D

• Question 308:

  Which of the following is the formula for the inventory turnover?

  A. Inventory turnover = Cost of Goods Purchased / Average Inventory

  B. Inventory turnover = Cost of Goods Sold / Average Inventory

  C. Inventory turnover = Cost of Goods Sold / Total Inventory

  D. Inventory turnover = Cost of Goods Purchased / Total Inventory

  Correct Answer: B

• Question 309:

  The modification of behavior through the perception of negative sanctions is called:

  A. Endorsement

  B. Deterrence

  C. Consent

  D. Authorization

  Correct Answer: B

• Question 310:

  Collection ratio can be calculated by the formula:

  A. Collection Ratio = 365 / Payable Turnover

  B. Collection Ratio = 365 + Net Income / Receivable Turnover

  C. Collection Ratio = 365 / Receivable Turnover

  D. Collection Ratio = 365 + Net Sales / Receivable Turnover

  Correct Answer: C