The operating cycle for a merchandising firm is ________.

Question

Quizplus · Accepted Answer

The operating cycle for a merchandising firm involves starting with cash, buying inventory, selling that inventory to customers, and then collecting cash from those customers. This cycle represents the core operations of a merchandising business, which is the buying and selling of goods. Option A describes the process of investing in equipment, which is not necessarily part of the operating cycle. Option B describes the process of borrowing and repaying loans, which is not the primary focus of a merchandising firm's operations. Option D describes the process of issuing stock and paying dividends, which is not necessarily related to the business's operating cycle.

The Operating Cycle for a Merchandising Firm Is ________