Meaning of the statement
The given statement translates to "The stock that remains at the end of the year is called closing stock" in English.

Explanation

Definition of Closing Stock
Closing stock refers to the value of all the unsold goods or inventory that a business holds at the end of a financial year or accounting period.

Significance of Closing Stock
- Closing stock is crucial for determining the cost of goods sold (COGS) and calculating the gross profit of a business.
- It helps in evaluating the financial health of a company by assessing its inventory turnover rate and efficiency in managing stock levels.
- Closing stock also plays a role in tax calculations as it is included in the calculation of the cost of goods sold and ultimately the net income.

Recording Closing Stock
- Closing stock is recorded on the balance sheet under the current assets section.
- It is valued at the lower of cost or net realizable value to ensure proper representation of the true financial position of the business.

Importance of Closing Stock
- It assists in determining the accurate value of inventory on hand, which is crucial for financial reporting and decision-making.
- Closing stock is necessary for calculating the cost of goods sold and ultimately the profitability of a business.
In conclusion, closing stock is a significant aspect of inventory management and financial accounting, providing valuable insights into a company's performance and financial position at the end of a reporting period.