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Book inventory refers to the amount of stock that should be with a company according to company's accounting records. The entries in the book inventory will also account for when the stock was purchased and sold. The number or amounts in book inventory are arrived at with the assistance of accounting records. For example in a retail store, accounting records like incoming shipments of supplies and daily sales through the register helps to make the book inventory. In situations where it is difficult to keep an accurate record of the actual stock in hand small inconsistency between book inventory and actual stock on hand can be seen in larger companies. Such inconsistency must be accounted and addressed.
Management of book inventory is easier in a warehouses and wholesalers, because the stock area is closed to the public, and stock tends to go out in large lots rather than small individual purchases.