What is the cycle of operations in commercial or service companies? The typical operations in commercial or service companies are: BUY - SELL - CO...

The cycle of operations in commercial or service companies typically involves the following steps: 1. Buying: This is the process of acquiring goods or services from suppliers or vendors to meet the company's needs. 2. Selling: After acquiring the goods or services, the company sells them to customers or clients. This is the primary revenue-generating activity for commercial or service companies. 3. Collecting: Once the goods or services are sold, the company needs to collect payment from the customers. This may involve issuing invoices, following up on payments, and managing accounts receivable. 4. Paying: In order to continue operating, the company needs to pay its own expenses, such as salaries, rent, utilities, and suppliers. This step involves managing accounts payable and ensuring timely payment to vendors. These four steps - buying, selling, collecting, and paying - form the cycle of operations in commercial or service companies. It is important for companies to effectively manage each step to ensure smooth operations and financial stability.