Which of the Following Statements Is True

question 52

Multiple Choice

Which of the following statements is true?

• A)Municipal bond interest is subject to explicit federal tax.
• B)Municipal bond interest is subject to implicit tax.
• C)Municipal bonds typically pay a higher interest rate than corporate bonds with similar risk.
• D)All of these statements are true.
• E)None of these statements are true.

---

Definitions:

Liabilities

Financial obligations or debts that a company owes to external parties.

Net Income

The net income of a company following the deduction of all expenses, taxes, and costs from its total revenue.

Assets

Resources owned by a business that have economic value and can be used to meet debts, commitments, or facilitate operations.

Rent Expense

The cost incurred by a business for leasing a property or equipment, recognized as an expense in the income statement.