WAEC Commerce Past Questions & Answers - Page 39

191.

In marine insurance, when a particular cargo is thrown into the sea in order to prevent the ship from sinking, the type of marine loss is

A.

particular average loss

B.

general average loss

C.

total average loss

D.

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.

192.

A trader's turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock was D3,000.

What is the rate of turnover?

A.

13.5 times

B.

10.8 times

C.

9 times

D.

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

193.

A trader's turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock was D3,000.

The average stock is

A.

D5,000

B.

D3,000

C.

D2,500

D.

D2,000

Correct answer is C

Average stock = opening stock + closing stock / 2
2000 + 3000 = 5000 
5000 / 2 = 2500

194.

A trader's turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock was D3,000.

What is the cost of goods sold?

A.

D28,000

B.

D27,000

C.

D8,000

D.

D5,000

Correct answer is B

Starting inventory + purchases - ending inventory = cost of goods sold.

2000 + 28000 - 3000 = 27000

195.

The main divisions of production are

A.

industry, direct and indirect services

B.

extraction, manufacturing and construction

C.

industry, commerce and direct services

D.

industry, commerce and trading

Correct answer is B

Production has 3 main divisions
- Extraction
- manufacturing
- construction