Adam Smith, in the Wealth of Nations , Said the Capitalistic

question 58

Multiple Choice

Adam Smith, in The Wealth of Nations , said the capitalistic system was composed of six institutions, which include all but which of the following?

• A) Economic motivation.
• B) Free enterprise.
• C) Labor.
• D) Limited government.

---

Definitions:

Subsidiary Ledgers

Detailed ledgers that contain information about specific accounts, which then summarize into a control account in the general ledger.

Accounts Payable

Short-term liabilities of a company, representing amounts owed to creditors for goods or services received.

Accounts Receivable

Funds that customers owe to a business for goods or services that have been provided but remain unpaid.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership interest in the company.