JAMB Commerce 2018 Objective — Question 40
Question 40 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2018 Objective paper, with the correct answer and a full explanation.
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Given: Sales #15,000, Opening stock #5,600, Purchases #9,700, Closing stock #4,400, Gross profit #4,500, Net profit #2,000. Calculate the rate of turnover
- A. 3.50 times
- B. 3.00 times
- C. 2.00 times
- D. 2.18 timesCorrect
Explanation
Cost of goods sold = Opening stock + Purchases − Closing stock = 5,600+9,700−4,400 = 10,900. Average stock = (5,600+4,400)/2 = 5,000. Rate of turnover = 10,900/5,000 = 2.18 times.
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