What is the process of identifying, counting, and evaluating all stock on hand at a specific time called?

The process of identifying, counting, and evaluating all stock on hand at a specific time is referred to as a physical inventory. This systematic counting and assessment of inventory allows businesses to accurately determine the quantity and condition of their stock at a given moment.

Conducting a physical inventory is essential for several reasons. It helps ensure that the recorded inventory in the accounting system matches the actual inventory available. Additionally, it assists in identifying any discrepancies due to theft, loss, or administrative errors, which can significantly impact financial reporting and inventory management.

While terms like stock audit, quarterly review, and inventory analysis may involve examining stock levels and performance, they do not specifically denote the act of conducting a complete count and evaluation of all inventory at a single point in time like a physical inventory does.