Question

Write a note on operating cycle of a merchandising company with suitable example fmm domestic sole proprietor business near your home.

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Answer 1

Explanation:

A merchandising business sells goods, also known as merchandise. Good examples of merchandising businesses include retail clothing, grocery stores and bookstores. Some businesses produce the goods they sell, while other merchandise businesses buy and sell goods they've purchased wholesale.

Answer 2

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Operating Cycle for a Merchandiser A merchandising company's operating cycle begins by purchasing merchandise and ends by collecting cash from selling the merchandise. Companies try to keep their operating cycles short because assets tied up in inventory and receivables are not productive.