Value Electronics,Inc.started its operations on January 1,2019.Value 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 company like Value Electronics, Inc. would be to purchase inventory from vendors. This is because the company needs to have goods on hand to sell to customers before it can collect cash from them or record sales in accounts.