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Value Electronics, Inc. started its operations on January 1, 2019.
Value engages in buying and selling different types of electronic gadgets.

The first step in its operating cycle would be to ________.

A.collect cash from customers

B.sell goods to customers

C.record the sales in accounts

D.purchase inventory from vendors

Respuesta :

ahmedgodtrust

Answer:

The first step in operating cycle would be to purchase inventory from vendors.

The correct answer is D

Explanation:

The steps involved in operating cycle includes:

1. Purchase of inventory from vendors

2. Sale of goods to customers

3. Recording of sales in accounts                                                    

4. Collection of cash from customers                                

arshikhan8123

The correct option is D.

What is the Operating Cycle?

The operating cycle is the average period of time required for a business to make an initial outlay of cash to produce goods, sell the goods, and receive cash from customers in exchange for the goods.

What are the steps in an operating cycle?

There are three basic steps in the operating cycle: buying inventory with cash, selling inventory for credit, and receiving payment for the sale. The operating cycle can be calculated by adding the inventory period and the accounts receivables period.

Learn more about Operating Cycle here https://brainly.com/question/26482515

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