WAEC - Accounts Principles Of Accounts (2017 - No. 40)

Use the following information to answer the question below

Use the following information to answer the question below

Opening stock---------2,300
Purchases-------------11,874
Sales--------------------18,600
Closing stock-----------3,600
Cost of goods sold---11,500

What is the rate of stock turnover?

7 times
6 times
5 times
4 times

Explanation

Rate of stock of turnover=

cost of goods sold
average stock

Average stock = \(\frac{2,300 + 3,000}{2}\)  = 2,650

\(\frac{11,500}{2650}\) = 4.33 = 4 times

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