Opening Stock
Definition
The value of inventory a business holds at the start of an accounting period, carried over from the prior period's closing stock. It is added into the cost of goods sold calculation.
Related Terms in Core Accounting
Sales Return
Goods returned by a customer after a sale, reducing recorded revenue and, where tax applies, adjusting the tax charged — often through a credit note. Also called returns inward.
Purchase Return
Goods a business returns to a supplier after purchase, reducing recorded purchases and the amount owed — often via a debit note. Also called returns outward.
Capital Work in Progress (CWIP)
Spending on fixed assets still under construction or not yet ready for use. It sits on the balance sheet as CWIP and is not depreciated until the asset is completed and put into service.
Deferred Revenue Expenditure
A large revenue expense whose benefit extends over several periods, written off gradually rather than all at once. The concept is used less under modern standards, which favour expensing or capitalising.
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