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WAEC Commerce 2015 Question 18

Question 18

Business Calculations

Use the following information: BYX Enterprise has the following balances at the end of March 2010: Opening stock D6,000; Purchases D23,000; Salaries and wages D12,000; Closing stock D8,000; Sales D30,000.
What is the rate of turnover of BYX Enterprise?

  1. A.5.0 times
  2. B.3.5 times
  3. C.3.0 times
  4. D.1.5 times.
Show the answer and explanation

Answer: C (3.0 times)

Explanation

Average stock = (6,000 + 8,000) ÷ 2 = D7,000; rate of turnover = 21,000 ÷ 7,000 = 3 times.