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

Question 57

Multiple Choice

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


A) IV, III, II, I
B) I, II, III, IV
C) I, IV, II, III
D) IV, I, III, II

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