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:

Increase

A rise in the quantity, size, number, or degree of something.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of it that consumers are willing and able to purchase at any given price.

Expectations

The anticipations of consumers, firms, and others about future economic conditions, which can influence their decisions today.

Prices

The amount of money required to purchase goods, services, or assets.