Average stock is derived by adding

Assessment: WAEC SSCE - Commerce - 2022 (Objective) Subject: Commerce

Question 1 Report

Average stock is derived by adding
Answer Details
Average stock is a measure used in accounting to determine the average value of inventory held during a particular accounting period. It is calculated by adding the opening stock and closing stock of the accounting period and dividing the sum by 2. This gives the average stock held during the period. The formula for calculating average stock is: (Opening stock + Closing stock) ÷ 2. Therefore, the correct option is "opening stock to closing stock divided by 2".

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