Use the following information to answer this question. | | $ | | --- | ---: | | Stock(Inventory) 1 January 2011 | 60 000 | | Stock(inventory) 31 December 2011 | 84 000 | | Turnover | 480 000 | | Cost of goods sold | 360 000 | The rate of stockturn is

A4 times.

B5 times.

C6 times.

D10 times.

Explanation: Average stock

= \dfrac{60\,000+84\,000}{2} = \$72\,000

; stockturn

= \dfrac{360\,000}{72\,000} = 5

times.

ZIMSEC Principles of Accounts 7112/1 Paper 1 (Multiple Choice), November 2014, Q29

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