Accounting Topics > Stock(1)
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What is Stock(1)? A Basic Definition
Goods in the possession of the business for onward sale rather than for use in the operation of the business; also known as Inventory. Stock is stated on the Balance Sheet of a business at the lower of its cost and its net realisable value; in other words, if it cannot be sold for as much as or more than was paid for it, it must be put on the balance sheet at whatever amount it can actually be sold for.
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