Why closing stock is considered as an event?
Dear Student
In accounting terms, an event is simply an economic activity which can be cash or noncash which happens in day to day operation of a business which does not change the account balance, if that activity changes the account balance then it would be termed as an event.
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Therefore since in case of closing stock reporting, we are only presenting it in the books of final accounts, it is an event and not a transaction.
Hope this helps
Regards
In accounting terms, an event is simply an economic activity which can be cash or noncash which happens in day to day operation of a business which does not change the account balance, if that activity changes the account balance then it would be termed as an event.
.
Therefore since in case of closing stock reporting, we are only presenting it in the books of final accounts, it is an event and not a transaction.
Hope this helps
Regards