Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

Abhinav gave the information below. Purchases: - Year ended 31 December 2019: $112\,500 - Year ended 31 December 2020: $124\,000 Cost of sales: - Year ended 31 December 2019: $115\,500 - Year ended 31 December 2020: $120\,000 Inventory: - 1 January 2019: $7\,000 - 31 December 2019: $4\,000 - 31 December 2020: $8\,000 Calculate the rate of inventory turnover for the year ended 31 December 2020.

  • A15 times
  • B20 times
  • C21 times
  • D30 times

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