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WAEC Accounting 2022 Objective — Question 26

Question 26 of 50 from the West African Examinations Council (WAEC) Accounting 2022 Objective paper, with the correct answer and a full explanation.

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Stock turnover ratio is

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

Explanation

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

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