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WAEC Commerce 2001 Question 5

Question 5

Business Calculations

The number of times the average stock of a business is sold within a given period is

  1. A.turnover
  2. B.rate of turnover
  3. C.sales return
  4. D.current ratio
Show the answer and explanation

Answer: B (rate of turnover)

Explanation

Rate of turnover (stock turn) = cost of goods sold ÷ average stock: the number of times stock is sold.