passwella.
Menu

WAEC Commerce 2006 Question 11

Question 11

Business Calculations

Use the following information: The following information relates to Mallam Amidu Kachella for the year ended 31/12/2005 (₦): Opening stock 4,000; Purchases 16,000; Sales 30,000; Debtors 6,500; Creditors 4,200; Cash in hand 800; Closing stock 5,600; Bank overdraft 3,000.
The average stock is

  1. A.₦1,600
  2. B.₦4,800
  3. C.₦5,600
  4. D.₦9,600
Show the answer and explanation

Answer: B (₦4,800)

Explanation

Average stock = (4,000 + 5,600) ÷ 2 = ₦4,800.