Best Value 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 Best Value Inc.'s operating cycle would be to purchase inventory from vendors, as it needs to have products in stock before it can sell them to customers. Collecting cash from customers and recording sales in accounts would come after the sale has been made, and selling goods to customers would come after the inventory has been purchased.