Which of the Following Savings Vehicles Is Free of State

question 7

Multiple Choice

Which of the following savings vehicles is free of state and local income taxes?

• A)Certificates of deposit
• B)Money market mutual funds
• C)Time deposits
• D)Money market deposit accounts
• E)I savings bonds

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Definitions:

Supplies Expense

Expenditures related to consumable supplies used in the operating activities of a business during a specific period.

Dividends

Payments made by a corporation to its shareholder members. It's often quoted as the amount each share receives (dividends per share).

Unearned Rent

Income received for rent before the rental period has occurred, recorded as a liability until the period passes.

Adjusted Trial Balance

A listing of all the accounts and their balances after adjustments have been made, used to prepare financial statements.