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

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

Quizplus · Accepted Answer

The operating cycle begins with the purchase of inventory, followed by sales of inventory on credit or for cash, and finally, the collection of cash from credit sales, which completes the cycle.

The Operating Cycle Involves the Purchase and Sale of Merchandise