Accountıng I Deneme Sınavı Sorusu #1313773

I- Sell the inventory

II- Purchase inventory

III- Collect cash from customers

Which of the above are included in the operating cycle of a merchandising company?


Only I

Only II

I and II

II and III

I, II and III


Yanıt Açıklaması:

The operating cycle of a merchandising company starts with the purchase of inventories from a producer or an individual, called a vendor. Then these inventories are sold to customers, either in cash or on account. When the cash is collected from customers, the operating cycle ends the first round.

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