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WAEC Accounting 2017 Paper

Question : 40

Total: 50

Use the following information to answer the question below

Solution:

Concept:

Rate of stock turnover shows the number of times a business sells its average stock during a period.

Explanation:

Rate of stock turnover =

\frac{\text{Cost of goods sold}}{\text{Average stock}}

Average stock =

\frac{2{,}300 + 3{,}000}{2} = 2{,}650

So, rate of stock turnover =

\frac{11{,}500}{2{,}650} = 4.34

This is approximately

4

times.

Answer:

D. 4 times

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