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WAEC Commerce 2018 Objective — Question 16

Question 16 of 50 from the West African Examinations Council (WAEC) Commerce 2018 Objective paper, with the correct answer and a full explanation.

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If the opening stock of Ali Ltd is #40,000 cost of goods sold is #48,000 and closing stock is #24,000, its rate of turnover will be

  • A. 1.2 times
  • B. 1.5 timesCorrect
  • C. 2.0 times
  • D. 7.5 times

Explanation

Average stock = (40,000+24,000)/2 = 32,000. Rate of turnover = Cost of goods sold/Average stock = 48,000/32,000 = 1.5 times.

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