What is the difference between a transaction history and current stock level?

• A. Transaction history shows only purchases; current stock shows all receipts.
• B. Transaction history records all changes to an item's quantity; current stock level shows the up-to-date on-hand quantity.
• C. Transaction history tracks disposal; current stock tracks on-hand plus on-order.
• D. Transaction history is used for payroll; current stock level is used for audits.

Answer: (B)

In inventory systems, you have a record of every change to an item's quantity (the transaction history) and you have the current quantity on hand (the current stock level). The transaction history logs all events that alter quantity—receipts, issues, returns, adjustments, disposals—so you can trace exactly how the quantity arrived at its present state. The current stock level is simply the up-to-date on-hand amount right now, reflecting the net result of all those changes.

That’s why the correct description fits best: the history captures every change to quantity, while the current stock shows the real-time on-hand quantity. The other statements miss or misrepresent how these pieces work—for example, the history isn’t limited to purchases, and current stock isn’t about on-order quantities.