Commerce WASSCE (PC), 2016

Question 8

 

  1. Explain the following business terms:
  2.  
  3. Net sales;
  4. Rate of turnover;
  5. Net profit.

            Candidates were required to calculate the following balances given:

  1. The cost of goods sold;
  2. The net profit;
  3. The rate of turnover.

 

 

 

 

Observation

 

The few candidates that attempted this question did not perform well. 

The expected responses to the question include:

(a)        (i)         Net Sales: it is gross sales of a business less return inwards
(ii)        Rate of turnover:  it is the number of times the stock of a business is sold during a given period;                                                                                    
(iii)       Net Profit:  it is the gross profit of a business less its expenses
i.e. gross profit minus total expenses;

 

b) Calculation