Which of the following is the correct order of the steps in the accounting cycle for a merchandising company?
I. The company sells inventory to customers, creating Accounts receivable.
II. The company collects cash.
III. The company buys inventory.
A) III, I, II
B) I, II, III
C) II, I, III
D) III, II, I

Question

Quizplus · Accepted Answer

The correct order starts with III (the company buys inventory), followed by I (the company sells inventory to customers, creating Accounts Receivable), and ends with II (the company collects cash).

Which of the Following Is the Correct Order of the Steps