Your Company Is Planning to Increase Its Political Influencing Activities

question 163

Multiple Choice

Your company is planning to increase its political influencing activities in the next fiscal year in an attempt to shape upcoming key legislation in your favor.
Which of the following steps should you consider to accomplish this goal?

• A) Hire a public relations firm to help create a more youthful image for your company.
• B) Form your own Political Action Committee (PAC).
• C) Decrease your contributions to the political campaigns of key legislators.
• D) Close your company's legislative affairs office in Washington D.C.
• E) Cancel your company's membership in the U.S. Chamber of Commerce.

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Definitions:

Expense Recognition Principle

An accounting principle that expenses should be recognized in the period in which they are incurred to produce revenues, aligning expenses with corresponding revenues.

Accounting Period

A specific time frame for which financial records are maintained and financial statements are prepared, usually annually or quarterly.

Earned

Income or revenue that has been realized through the sale of goods or services.

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.