The Operating Cycle Involves the Purchase and Sale of Merchandise

question 118

True/False

The operating cycle involves the purchase and sale of merchandise inventory as well as the subsequent collection of cash from credit sales.

---

Definitions:

Government Agencies

Organizations established by a government to implement policy, enforce laws, and oversee specific areas of public administration.

Offering Available

Offering available denotes the range of products or services that a business makes accessible to its customers.

Consumers

Individuals or groups who purchase goods and services for personal use.

Utility

The satisfaction or benefit a consumer derives from consuming a product or service.