Question

Value Electronics Company 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. purchase inventory from vendors B. sell goods to customers C. collect cash from customers D. record the sales in accounts

Answer 1

The correct answer is A. purchase inventory from vendors

Step-by-step explanation:

The inventory is a detailed, orderly and valued relationship of the elements that make up the assets of a company or person at a given time. In the past, it was normal for inventories to be carried out by physical means (they were written on paper), but now they are usually kept in databases centrally to an entire company, even if there are companies or small stores that continue doing so with paper.

The inventory is:

• detailed because the characteristics of each of the elements that make up the heritage are specified.
• ordered because it groups the assets in their corresponding accounts and the accounts in their assets.
• valued because the value of each asset is expressed in monetary units.