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Calculating Depreciation and Stock Values Cheat Sheet by

Calcul­ating Deprec­iation

Straight Line Method
Reducing Balance Method
Other Methods
Same deprec­iation throughout the years
Same percent, different amount
1. The sum-of­-th­e-d­igits method. 2. Usage method

Stock Valuation

A stock take can be used to find out how much stock is being held.
Different ways to value stocks such as:
FIFO involves issuing stock in the order in which it is delivered, so that the remaining stock is valued closer to its replac­ement cost
LIFO involves issuing more recent deliveries first, so that closing stock is valued at the order and possible lower purchase price
Average cost recalc­ulating every time new deliveries arrive

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