What is the meaning of STOCK-TACKING ?

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What is the meaning of STOCK-TACKING ?

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Stock Taking refers to the physical count of the stock as on a particular date eg: 31 March which is used for the purpose of Diclosing the stock in the financial statements.

That is the qty of dislosed in the financials is verified by the process of stock taking.

Note that stock taking cannot be construed the same as stock valuation.

stock taking generally implies physical counting and verification of stock items as on particular date. Here particular date varies depends on the requirements of the authorities. The authorities may be management or statutory. Stock verification can de undertaken monthly, quarterly and even once in a year. Stock taking is generally conducted to ensure the existence and availability of stock physically and to enable the management to take appropriate and necessary measures and steps to avoid uncertainities.


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