In 2016, How Much Money Could an Individual Give to Each

question 36

Multiple Choice

In 2016, how much money could an individual give to each candidate or candidate committee, per election?

• A) $2,700
• B) $5,000
• C) $33,400
• D) $45,400
• E) no limit

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Definitions:

Accrual Basis Accounting

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash transaction actually takes place. This method provides a more accurate picture of a company's financial condition than cash basis accounting.

Expense Recognition

The accounting principle that expenses should be recorded in the period in which they are incurred, matching them with the revenues they help to generate.

Working Papers

Documents that auditors create to support an audit process, including detailed records and summaries of audit evidence.

Operating Cycle

The average period it takes for a business to convert its inventory into cash flows from sales, reflecting the time taken to sell inventory, collect receivables, and pay bills.