In Which Year Did the U

question 29

Multiple Choice

In which year did the U.S. government announce that for the first time in more than 30 years, the corrections system, including prisons, held fewer people than the year before?

• A) 2015
• B) 2010
• C) 2008
• D) 2007

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Definitions:

Factor

A financial intermediary that purchases receivables from businesses, providing them with immediate cash flow.

Sale of Receivables

The process of selling outstanding invoices to a third party in order to receive immediate payment.

Allowance for Doubtful Accounts

An accounting estimate for the portion of accounts receivable that may not be collectible.

Bad Debt Expense

An expense account reflecting estimated uncollectible accounts receivable due to credit sales that are unlikely to be recovered.