Which of the Following Is Not a True Statement Regarding

question 81

Multiple Choice

Which of the following is not a true statement regarding municipal bonds?

• A) A municipal bond is a debt obligation issued by state or local governments.
• B) A municipal bond is a debt obligation issued by the Federal Government.
• C) The interest income from a municipal bond is exempt from federal income taxation.
• D) The interest income from a municipal bond is exempt from state and local taxation in the issuing state.

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Definitions:

Expenses

Economic costs that a business incurs through its operations to earn revenue.

Trial Balance

A bookkeeping report that lists the balances in each general ledger account at a specific point in time, used to check the accuracy of bookkeeping entries.

Debit Column

The side of an accounting ledger where increases in assets, expenses, and withdrawals are recorded.

Credit Column

is a section in financial statements or ledgers where increases in liability, equity, and revenue accounts or decreases in asset and expense accounts are recorded.