What is the first step in the operating cycle for a retailing business?
A)The firm sells inventory to customers,creating accounts receivable.
B)The firm delivers inventory to customers.
C)The firm collects cash.
D)The firm buys inventory.

Question

Quizplus · Accepted Answer

The first step in the operating cycle for a retailing business is to purchase inventory, which is typically the largest expense for a retail business. This inventory is then sold to customers, which generates revenue and accounts receivable. Once customers pay for their purchases, the firm collects cash, which completes the operating cycle.

What Is the First Step in the Operating Cycle for a Retailing