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opening stock


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The stock held by an organization at the beginning of an accounting period as raw materials, work in progress, or finished goods. The closing stocks of one period become the opening stocks of the succeeding period and it is necessary to establish the level of closing stocks so that the cost of their creation is not charged against the profits of that period but brought forward as opening stocks to be charged against the profits of the succeeding period.

Subjects: Financial Institutions and Services — Accounting.


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