What Is the First Step in the Accounting Cycle for a Merchandising

question 162

Multiple Choice

What is the first step in the accounting cycle for a merchandising company?

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

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Definitions:

Sinkhole

A depression or hole in the ground caused by the collapse of a surface layer, often due to the dissolution of the underlying limestone, volcanic activity, or water drainage.

Stalactite

A type of speleothem that hangs from the ceiling of limestone caves, formed by the precipitation of minerals from water dripping down.

Calcium Carbonate

A chemical compound with the formula CaCO3, found in rocks such as limestone, and is the main component of shells of marine organisms, snails, and eggs.

Precipitation

Any form of water - liquid or solid - falling from the atmosphere to the Earth's surface, including rain, snow, sleet, and hail.