Which, If Any, Is Not One of Adam Smith's Canons

question 26

Multiple Choice

Which, if any, is not one of Adam Smith's canons (principles) of taxation?

• A)Economy in collection
• B)Certainty
• C)Convenience of payment
• D)Simplicity
• E)Equality

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Definitions:

Net Income

The total revenue of a business minus total expenses, representing the profit made during a specific period.

Uncollectible Receivables

Accounts receivable that are considered to be uncollectable and are treated as a loss because payment is no longer expected.

Percent of Sales Method

A financial forecasting model that estimates changes in balance sheet and income statement accounts as a direct percentage of sales.

Uncollectibles

Debts owed to a company that are considered to be unlikely to be paid and written off as a loss.