📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    For the financial year ended 31st March 2023, the

    figures extracted from the balance sheet of ABC Ltd. are as under: Opening stock 29,000 Closing stock 31,000 Purchases 2,42,000 The stock turnover ratio will be -
    A 12 Times Correct Answer Incorrect Answer
    B 15 Times Correct Answer Incorrect Answer
    C 9 Times Correct Answer Incorrect Answer
    D 8 Times Correct Answer Incorrect Answer

    Solution

    Opening Stock + Purchase - Closing Stock = Cost of goods sold 29,000 + 2,42,000 - 31,000 = 2,40,000 Stock Turnover Ratio = Cost of goods sold / Average Stock 2,40,000 / 30,000  = 8 times

    Practice Next
    ask-question

    Not sure which exam is best for you Talk to our expert

    Get My Free Call