The Operating Cycle for a Merchandiser That Sells Only for Cash

question 27

Multiple Choice

The operating cycle for a merchandiser that sells only for cash moves from:

• A) Purchases of merchandise to inventory to cash sales.
• B) Purchases of merchandise to inventory to accounts receivable to cash sales.
• C) Inventory to purchases of merchandise to cash sales.
• D) Accounts receivable to purchases of merchandise to inventory to cash sales.
• E) Accounts receivable to inventory to cash sales.

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Definitions:

Prior Period Adjustments

Corrections of errors in financial statements of previous periods or adjustments for changes in accounting policies.