A merchandising company's operating cycle begins with the purchase of merchandise and ends with the collection of cash from the sale.

Question

Quizplus · Accepted Answer

This statement is true. The operating cycle of a merchandising company involves purchasing merchandise, selling it, and then collecting the cash from the sale. This cycle continues continuously, as the company buys and sells inventory to generate revenue.

A Merchandising Company's Operating Cycle Begins with the Purchase of Merchandise