The Gajet Store Inc. started its operations on January 1, 2015. 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 The Gajet Store Inc. would be to purchase inventory from vendors, as it is necessary to have merchandise available for sale to customers. Once merchandise is purchased, the business can then sell goods to customers, collect cash from customers, and record sales in accounts.