Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

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Multiple Choice

Which business activity ensures that the business will have goods to sell?

Collecting accounts receivable

Purchasing inventory

Recording net sales

Paying dividends

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Verified step by step guidance

Understand the context of the question: The question is asking about the business activity that ensures the business will have goods to sell. This relates to the operational cycle of a business, specifically the procurement of goods.

Review the options provided: (1) Collecting accounts receivable, (2) Purchasing inventory, (3) Recording net sales, and (4) Paying dividends. Analyze each option to determine its relevance to ensuring goods are available for sale.

Eliminate irrelevant options: (1) Collecting accounts receivable pertains to cash inflows from customers, not directly related to having goods to sell. (3) Recording net sales is a reporting activity, not a procurement activity. (4) Paying dividends is a distribution of profits to shareholders, unrelated to inventory or goods.

Focus on the correct option: (2) Purchasing inventory is the activity that directly ensures the business will have goods to sell. Inventory purchasing is part of the supply chain process, where businesses acquire goods from suppliers to stock and sell.

Conclude the reasoning: Purchasing inventory is essential for maintaining stock levels, enabling the business to meet customer demand and generate revenue through sales.