{"id":54058,"date":"2024-04-16T00:03:42","date_gmt":"2024-04-16T00:03:42","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=54058"},"modified":"2024-04-16T00:03:42","modified_gmt":"2024-04-16T00:03:42","slug":"what-is-the-stock-turnover-ratio-when-the-opening-stock-is-rs-50000-closing-stock-is-rs-60000-and-and-the-cost-of-goods-sold-is-rs-220000","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-stock-turnover-ratio-when-the-opening-stock-is-rs-50000-closing-stock-is-rs-60000-and-and-the-cost-of-goods-sold-is-rs-220000\/","title":{"rendered":"What is the stock turnover ratio when the opening stock is Rs. 50,000; closing stock is Rs. 60,000 and; and the cost of goods sold is Rs. 2,20,000?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;2 times&#8221; option2=&#8221;3 times&#8221; option3=&#8221;4 times&#8221; option4=&#8221;5 times&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is C. 4 times.<\/p>\n<p>The stock turnover ratio is a measure of how many times a company sells its inventory in a year. It is calculated by dividing the cost of goods sold by the average inventory. In this case, the cost of goods sold is Rs. 2,20,000, the opening stock is Rs. 50,000, and the closing stock is Rs. 60,000. The average inventory is therefore (50,000 + 60,000) \/ 2 = Rs. 55,000. The stock turnover ratio is therefore 2,20,000 \/ 55,000 = 4 times.<\/p>\n<p>Option A is incorrect because the stock turnover ratio is not 2 times. The stock turnover ratio is 4 times.<\/p>\n<p>Option B is incorrect because the stock turnover ratio is not 3 times. The stock turnover ratio is 4 times.<\/p>\n<p>Option D is incorrect because the stock turnover ratio is not 5 times. The stock turnover ratio is 4 times.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;2 times&#8221; option2=&#8221;3 times&#8221; option3=&#8221;4 times&#8221; option4=&#8221;5 times&#8221; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-54058","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is the stock turnover ratio when the opening stock is Rs. 50,000; closing stock is Rs. 60,000 and; and the cost of goods sold is Rs. 2,20,000?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/what-is-the-stock-turnover-ratio-when-the-opening-stock-is-rs-50000-closing-stock-is-rs-60000-and-and-the-cost-of-goods-sold-is-rs-220000\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is the stock turnover ratio when the opening stock is Rs. 50,000; 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