The cash sales operating cycle moves from

Question

Quizplus · Accepted Answer

The cash sales operating cycle starts with purchases, where a business buys inventory to sell. The purchased inventory is then held in inventory for sale. When the inventory is sold to customers, it generates accounts receivable, which turns into cash when the customers pay their bills. Therefore, the correct sequence of the cash sales operating cycle is purchases to inventory for sale to cash sales. Option D is the only choice that follows this sequence.

The Cash Sales Operating Cycle Moves from