Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

The following details were given by a trader. Revenue: $3600$ Opening inventory: $100$ Purchases: $2600$ Closing inventory: $300$ Gross profit: $1200$ It was then discovered that the closing inventory ought to have been $400$. What is the correct rate of inventory turnover?

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

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