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WAEC Commerce 2025 Question 16

Question 16

Business Calculations

Use the information below to answer questions 14 to 16.
₦
Stock as at 01/01/2024 20,000
Stock as at 31/12/2024 50,000
Purchases 100,000
Sales 90,000
The rate of stock turnover is

  1. A.2 times.
  2. B.2.6 times.
  3. C.3 times.
  4. D.3.5 times.
Show the answer and explanation

Answer: A (2 times.)

Explanation

Average stock = (20,000 + 50,000) ÷ 2 = ₦35,000. Rate of stock turnover = cost of goods sold ÷ average stock = 70,000 ÷ 35,000 = 2 times.