Difference Between Stock In Trade And Inventory

1. Stock in Trade is the Finished Goods unsoled at the end of Accounting Period / Accounting Cycle while Inventory belongs to Raw Material, Work In Process And Finished Goods unsold during the Accounting Cycle.

2. Stock in Trade is a narrow term as it includes only finished goods / completed goods while Inventory is a wider term. It includes not only raw material, work in process but also finished goods.