WAEC Commerce 2023 Objective — Question 26
Question 26 of 50 from the West African Examinations Council (WAEC) Commerce 2023 Objective paper, with the correct answer and a full explanation.
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If opening and closing inventories of a business are D500 and D300 respectively and cost of sales is D1,200, rate of turnover will be A. 4.0 times.
- A. 4.0 times
- B. 3.0 timesCorrect
- C. 2.4 times
- D. 1.5 times
Explanation
Average stock = (opening stock + closing stock)/2 = (500+300)/2 = 400. Rate of turnover = cost of sales/average stock = 1200/400 = 3.0 times.
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