Factoring Is a Financial Transaction Whereby a Business Sells Its

question 49

True/False

Factoring is a financial transaction whereby a business sells its accounts receivable to a third party at a discount in exchange for cash.

---

Definitions:

Cycle Inventory

Inventory that a company holds to meet its normal sales operations, varying over the course of an operating cycle or period.

Forecasted Demand

An estimate of the quantity of a product or service that consumers will purchase in the foreseeable future.

Periodic Review

An evaluation process conducted at regular intervals to assess performance, inventory levels, or other critical factors in operations and management.

Inventory Status

This term describes the current state or levels of stock and inventory items within a business, indicating availability for sale or production use.