Tag: Inventory Turnover

Accounting Multiple Choice Question – 20 June 2023

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

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A company produces the following information concerning inventory turnover (rate of inventory turn).

Year 1
average inventory – £60k
Inventory turnover – 10 times

Year 2
average inventory – Double Year 1
cost of sales – £960k

What will be the inventory turnover in year 2?

Select ONE answer:

  1. 8 times
  2. 10 times
  3. 16 times
  4. 20 times

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 1

  1. Correct – £960 / (£60k * 2) = = > 8 times
  2. Not correct
  3. Not correct
  4. Not correct

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