Stock, also referred to as inventory, represents the items or goods that a business has available for sale to its customers. These can include raw materials, work-in-progress products, and finished goods. Managing stock effectively is crucial for a company's operations and profitability. For example, retailers need to maintain an optimum level of stock to meet customer demand without overstocking or running into shortages. Warehousing, stock turnover, and supply chain management are important aspects of handling stock. A company's stock is typically recorded as an asset on its balance sheet. Efficient stock management not only impacts liquidity and operational efficiency but also customer satisfaction. For instance, a store running out of popular items can lead to loss of sales and clientele. On the other hand, overstocking ties up capital and increases storage costs. Proper reconciliation and periodic reviews of stock are essential to ensure accurate financial reporting and operational effectiveness.