WAEC Accounting 2021 Objective — Question 13

Question 13 of 50 from the West African Examinations Council (WAEC) Accounting 2021 Objective paper, with the correct answer and a full explanation.

[Sales for the year Le450,000; Purchases for the year Le230,000; Opening stock Le60,000; Closing stock Le40,000.] The stock turnover period for the year is

A. 88 days
B. 73 daysCorrect
C. 58 days
D. 41 days

Explanation

Cost of goods sold = 60,000+230,000-40,000 = Le250,000. Average stock = (60,000+40,000)/2 = Le50,000. Stock turnover = 250,000/50,000 = 5 times. Stock turnover period = 365/5 = 73 days.

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