Commerce Questions and Answers
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
Test and improve your knowledge of the fundamentals of buying and selling with these Commerce past questions and answers.
The turnover of a trade is the
number of times the stock is sold
total sales made during a period
profit made during the period
total purchases made during the period
Correct answer is A
Turnover is an accounting concept that calculates how quickly a business conducts its operations. Most often, turnover is used to understand how quickly a company collects cash from accounts receivable or how fast the company sells its inventory.
particular average loss
general average loss
total average loss
constructive average loss
Correct answer is B
General Average Losses — maritime partial losses sustained from voluntary sacrifice, such as jettisoning part of the cargo, to save the ship or crew, or from extraordinary expenses incurred by one of the parties for everyone's benefit, such as the cost to tow a disabled vessel.
13.5 times
10.8 times
9 times
5.4 times
Correct answer is B
The inventory turnover ratio is calculated by dividing the cost of goods sold for a period by the average inventory for that period
COGS / average stock = Rate of turnover
cogs = opening stock + purchases - closing stock
2000 + 28000 - 3000 = 27000
Average stock = opening stock + closing stock / 2
2000 + 3000 / 2 = 2500
Rate of turnover = 27000/ 2500 = 10.8 times
D5,000
D3,000
D2,500
D2,000
Correct answer is C
Average stock = opening stock + closing stock / 2
2000 + 3000 = 5000
5000 / 2 = 2500
D28,000
D27,000
D8,000
D5,000
Correct answer is B
Starting inventory + purchases - ending inventory = cost of goods sold.
2000 + 28000 - 3000 = 27000