Best Value,Inc.started its operations on January 1,2017.It engages in buying and selling different types of electronic gadgets.The first step in its operating cycle would be to ________.
A)collect cash from customers
B)sell goods to customers
C)purchase inventory from vendors
D)record the sales in accounts

Question

Quizplus · Accepted Answer

The first step in the operating cycle of a merchandising business like Best Value, Inc. would be to purchase inventory from vendors. This starts the process of acquiring goods that the company will eventually sell to customers. The other choices (A, B, and D) all occur later in the operating cycle after inventory has been acquired and the company has started selling goods to customers.