11 Stock

‘I was always a kid trying to make a buck. I borrowed a dollar from my dad, went to the penny candy store, bought a dollar’s worth of candy, set up my booth, and sold candy for five cents apiece. Ate half my inventory, made $2.50, gave my dad back his dollar.’

Guy Fieri, restaurateur, author, TV personality

In a nutshell

Stock (or inventory) is normally one of the largest assets in the balance sheet of manufacturing/retailing businesses. It is through the sale of stock that a business earns revenue.

Stock carries significant commercial risks for a business. Excessive stock can result in liquidity problems and risks of non-saleability. Too little and a business may miss out on sales opportunities or lose customers.

Stock must be counted ...

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