In 2010, Two Members of Congress Held a Colorful Press

question 77

Multiple Choice

In 2010, two members of Congress held a colorful press conference, with goats in tow, to announce their intention to try to end federal mohair (a fabric made from goat hair) subsidies.These subsidies, long the target of presidents and members of Congress from both parties, dated from the mid-1950s, when Congress decided to support mohair production as a precaution against wool shortages.The subsidies were cut in 1995, but reemerged a few years later.The efforts of Chaffetz and Weiner to end the estimated $750,000 in subsidies, meanwhile, failed. Why might programs such as the mohair subsidy be so difficult to end?

• A) Most longtime programs, no matter how small, have broad support from the American people.
• B) Clientele agencies lobby for their survival, on behalf of the people and industries they serve-such as, in this case, the Department of Agriculture, on mohair producers' behalf.
• C) The few who benefit from a program will intensely fight elimination, or fight to reinstate cut programs, while most taxpayers would be unlikely to care, being largely unaffected.
• D) Congress prefers an incremental approach to cutting government services, even relatively small ones.

Grasp the concept and purpose of internal control within a company.

Identify and list company policies that would strengthen internal control.

Understand the adjustments needed for reconciling the book and bank statements.

Comprehend the treatment of bank service charges and interest earned in reconciliations.

---

Definitions:

Charity Watchdogs

Organizations or groups that monitor, evaluate, and report on the transparency, accountability, and effectiveness of charities and non-profit organizations.

Private Organizations

Organizations operated and funded by private individuals or groups, without governmental control, and may pursue profit or nonprofit activities.

Nonprofit Performance

The assessment of how effectively nonprofit organizations achieve their goals and deliver on their mission.

Fund-raising

The process of gathering voluntary contributions of money or other resources by requesting donations from individuals, businesses, charitable foundations, or governmental agencies.