What Is the First Step in the Operating Cycle for a Retailing

question 43

Multiple Choice

What is the first step in the operating cycle for a retailing business?

• A)The firm sells inventory to customers, creating accounts receivable.
• B)The firm buys inventory.
• C)The firm collects cash.
• D)The firm delivers inventory to customers.

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Definitions:

Public Markets

Marketplaces, whether physical or electronic, that are accessible to the public for the buying and selling of securities, commodities, and other goods.

Stockholders' Equity

The owners' residual interest in a corporation's assets after deducting liabilities, often referred to as shareholder equity or owner's equity.

Net Income

The total profit of a company after all expenses have been deducted from revenues, also known as the bottom line.

Investments

Assets purchased with the aim of generating income or appreciating in value over time, such as stocks, bonds, or real estate.