Best Value Company 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 retail company like Best Value Company would be to purchase inventory from vendors, which will then be sold to customers. The company cannot sell goods before purchasing them from vendors, and it cannot collect cash from customers before selling goods. Recording sales in accounts is not the first step in the operating cycle.

Best Value Company Started Its Operations on January 1,2017