The operating cycle of a merchandiser begins when the company purchases inventory from a vendor and ends when the company collects cash from customers.

Question

Quizplus · Accepted Answer

The operating cycle for a merchandiser typically includes the following steps:

1. Purchasing inventory from a vendor
2. Holding inventory in stock
3. Selling inventory to customers on credit
4. Collecting cash from customers
5. Paying vendors for inventory purchases

Therefore, the operating cycle begins with inventory purchases and ends with cash collections from customers.

The Operating Cycle of a Merchandiser Begins When the Company