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WAEC Financial Accounting 2022 Question 26

Question 26

Interpretation of Accounts

Use the following information to answer questions 25 and 26
Sales: GH¢200,000
Purchases: GH¢170,000
Opening stock: GH¢40,000
Closing stock: GH¢50,000
Stock turnover ratio is

  1. A.4 times
  2. B.3.78 times
  3. C.3.56 times
  4. D.3.2 times
Show the answer and explanation

Answer: C (3.56 times)

Explanation

160,000 ÷ average stock 45,000 = 3.56 times.