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

Question

Quizplus · Accepted Answer

The first step in the accounting cycle for a merchandising company is to buy inventory. This transaction will result in an increase in inventory and a decrease in cash or an increase in accounts payable.

What Is the First Step in the Accounting Cycle for a Merchandising