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WAEC Accounting 2022 Paper

Question : 47

Total: 50

Use the following information to answer below

Solution:

Concept:

Stock turnover ratio shows how many times the average stock is sold during a period.

Explanation:

Stock turnover ratio =

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

Average stock =

\frac{\text{Opening stock} + \text{Closing stock}}{2}

\frac{40{,}000 + 50{,}000}{2} = 45{,}000

Stock turnover ratio =

\frac{160{,}000}{45{,}000} = 3.555

Rounded off, this is approximately

3.56

times.

Answer:

3.56

times

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