A retailer buys and sells on 30 days CR and from the date of purchase it takes, on average, 14 days to sell inventory. What is the correct order for the steps in this retailer's operating cycle?
I Sell goods to customer
II Collect cash payment from customer
III Pay supplier
IV Purchase goods for resale from supplier

Question

Quizplus · Accepted Answer

The correct order is IV (Purchase goods for resale from supplier), I (Sell goods to customer), III (Pay supplier), II (Collect cash payment from customer). This sequence reflects the process from purchasing inventory to selling it, then paying the supplier, and finally collecting payment from the customer.

A Retailer Buys and Sells on 30 Days CR and from the Date