Accounting Multiple Choice Question – 8 January 2018

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Accounting

Woodpecker Ltd provided a list of its assets and liabilities as at 31 December 2016 as follows.

  • Long-Term Assets £300k
  • Inventory £85k
  • Accounts Receivables £40k
  • Bank Account £10k
  • Cash £5K
  • Accounts Payable £65k
  • Long-term Bank Loan £700k
  • Reserves £125k
  • Share Capital £100kRevenue £3,800k
  • Cost-of-Sales £2,400k
  • Net Profit Margin £300k
  • Purchases £1,200k

What is Woodpecker’s Rate of Inventory Turnover (days) ratio?

Select ONE answer:

  1. 12.53
  2. 13.84
  3. 12.93
  4. 12.65
  5. 14.85

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – £85k / £2,400k * 365 = 12.93 days

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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