Question

The operating cycle of a merchandiser begins when the company purchases inventory from a vendor and ends when the company collects cash from customers.

A) True
B) False

Answer 1

The operating cycle of a merchandiser begins when the company purchases inventory from a vendor and ends when the company collects cash from customers.

Step-by-step explanation:

The statement 'The operating cycle of a merchandiser begins when the company purchases inventory from a vendor and ends when the company collects cash from customers' is True.

The operating cycle refers to the time it takes for a company to convert its inventory into cash. It starts with the purchase of inventory, which is then sold to customers. When those customers pay for the purchased goods, the operating cycle is completed.

For example, let's say a clothing store purchases inventory from a clothing manufacturer. It then sells those clothes to customers. When the customers pay for the clothes, the store has completed its operating cycle.”