The operating cycle begins with
A)the acquisition of goods.
B)the receipt of cash from customers.
C)the payment for goods.
D)the initial investment by owners.
E)the sales to customers.

Question

Quizplus · Accepted Answer

The operating cycle begins with the acquisition of goods, as this represents the initial step in the process of creating and selling products. After goods are acquired, they can be processed and sold to customers, which generates revenue. Cash is then received from customers, and used to pay for additional goods to sell, completing the operating cycle.

The Operating Cycle Begins with