Which term best describes the physical process of adjusting stock values?

The term that best describes the physical process of adjusting stock values is "stock write down." A stock write down refers specifically to the reduction in the recorded value of inventory to reflect its current market value when that value is lower than the original cost. This often occurs due to inventory becoming obsolete, damaged, or when there’s a decline in market demand. This process ensures that the financial statements provide an accurate representation of the company's assets and the potential loss in value of unsold or slow-moving inventory.

While "stock assessment," "stock evaluation," and "stock return" might relate to inventory in some way, they do not specifically refer to the act of adjusting the recorded values of stock assets downward on the financial statements. "Stock assessment" and "stock evaluation" typically involve analyzing or estimating stock value without implying a reduction in that value. "Stock return," on the other hand, is more associated with the profitability and income generated from investments in stock rather than adjustments to inventory values.