Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

Jamila’s business sells only one product type. The information below was given. Year 1: units sold $1000$, sales revenue $8000$, inventory turnover rate $28$ days. Year 2: units sold $1000$, sales revenue $10\,800$, inventory turnover rate $31$ days. What changed in year 2?

  • AThe sales price decreased, and goods were sold faster.
  • BThe sales price decreased, and goods were sold more slowly.
  • CThe sales price increased, and goods were sold faster.
  • DThe sales price increased, and goods were sold more slowly.

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