Day: March 9, 2023

A business turns over its inventory 5 times a year.

Average inventory is £54,000 and sales are made at a mark-up of one third.

How much are the sales in £s?

Select ONE answer:

1. 240,000
2. 270,000
3. 320,000
4. 360,000

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

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

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

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – £54k * 5 = £270k * 1.333333333333333 = £360k

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