Political Action Committees (PACs)

question 197

Multiple Choice

Political Action Committees (PACs)

• A) are entities created by interest groups to make contributions to political campaigns.
• B) are informal alliances between Congress and interest groups to negotiate policy.
• C) are able to contribute unlimited amounts to campaigns.
• D) coalitions that form around policy ideas.
• E) none of the above.

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Definitions:

Unearned Service Revenue

Income received by a company for services that have not yet been performed or delivered.

Correcting Entry

An accounting entry made to correct an error in the financial statements.

Supplies Expense

The cost associated with the consumption of supplies used in the operations of a business during an accounting period.

Equipment

Fixed assets used in operations, such as machinery, computers, and furniture, which have a useful life of more than one accounting period.