Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

The data below refer to Chi’s business. opening inventory: $18000$ closing inventory: $26000$ cost of sales: $442000$ While working out his rate of inventory turnover, Chi mistakenly used closing inventory. How would this mistake affect the rate of inventory turnover?

  • A3.09 times too high
  • B3.09 times too low
  • C7.55 times too high
  • D7.55 times too low

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