O-LevelAccountingAnalysis and interpretation7707/12 · May/June 2022 · Q311 Mark

John's rate of inventory turnover was 10 times in year 1 and 8 times in year 2. What may have caused the change in the rate of inventory turnover?

Afall in demand

Bhigher sales

Clower inventory levels

Dlower selling price

✓ Correct answer

A: fall in demand

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Topic: Analysis and interpretation, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2022 Paper 1 Variant 2, question 31.

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