NABTEB Accounting 2020 Objective — Question 26

Question 26 of 50 from the National Business and Technical Examinations Board (NABTEB) Accounting 2020 Objective paper, with the correct answer and a full explanation.

Using the information in Q25, the stock turnover ratio is

A. 4 times
B. 3.78 times
C. 3.56 timesCorrect
D. 3.2 times

Explanation

Stock turnover ratio = Cost of goods sold / Average stock = 160,000 / ((40,000+50,000)/2) = 160,000/45,000 = 3.56 times.

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