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    Business
  3. Study Set
    Accounting for Governmental
  4. Exam
    Exam 6: Accounting for General Long-Term Liabilities and Debt Service
  5. Question
    Although Some Governments Have Issued Taxable Debt, the Interest Earned
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Although Some Governments Have Issued Taxable Debt, the Interest Earned

Question 67

Question 67

True/False

Although some governments have issued taxable debt, the interest earned on most debt issued by state and local governments is exempt from federal taxation and, in some states, from state taxation.

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