The 501c's Ability to Hide Its Contributors Created a New

question 59

Multiple Choice

The 501c's ability to hide its contributors created a new campaign-finance issue.Which of the following best describes the views of the Democrats? 

• A) That the right to freedom of association would be violated in encouraging donor anonymity 
• B) That anonymous contributions were simply a further corruption of the political process 
• C) That revealing the identity of donors would limit the amounts contributed to political campaigns 
• D) That unaccounted contributions would provoke the Supreme Court to limit campaign financing 
• E) That donors needed the right to remain anonymous so that they would not have to fear retribution

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Definitions:

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Equity, representing the relationship between an entity’s resources and how those resources are financed.

Cash Dividends

Payments made by a corporation to its shareholder members, usually derived from the company’s profits.

Purchase

The act of obtaining goods or services in exchange for money, which can be recorded as an asset or expense depending on its use.

Account

A record in financial accounting that tracks the increase and decrease of financial values, such as assets, liabilities, revenues, and expenses.