Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

A trader supplied the details shown below. Revenue: $\$3\,600$ Opening inventory: $\$100$ Purchases: $\$2\,600$ Closing inventory: $\$300$ Gross profit: $\$1\,200$ It was discovered that the closing inventory ought to have been $\$400$. Calculate the correct rate of inventory turnover.

  • A6 times
  • B8 times
  • C9.2 times
  • D14.4 times

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI