Which of the Following Statements Is FALSE

question 50

Multiple Choice

Which of the following statements is FALSE?

• A)Zero-coupon Treasury securities with maturities longer than one year also trade in the bond market.
• B)Treasury securities are initially sold to the public through dealers.
• C)Municipal bonds ("munis")are issued by state and local governments.
• D)Municipal bonds' distinguishing characteristic is that the income on municipal bonds is not taxable at the federal level.

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Definitions:

Total Revenues

The total amount of income generated by a business from its normal business operations, including sales of goods or services, before any expenses are deducted.

Income Summary

An account used in the closing process during the accounting cycle that summarizes the results of operations—revenues and expenses—before transferring the net income or loss to the owner's equity.

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations before any expenses are deducted.

Expense Accounts

Expense accounts are used in accounting to track money spent or costs incurred in a company's operations.