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Evidence that would not help with determining the effects of a transaction on the accounts would be a(n)

A) cash register sales tape.
B) bill.
C) advertising brochure.
D) check.

User Imiric
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1 Answer

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Final answer:

An advertising brochure would not help determine the effects of a transaction on accounts, unlike cash register sales tapes, bills, or checks. Monetary assets like traveler's checks and checking accounts are classified as M1, while money market accounts fall into M2.

Step-by-step explanation:

Evidence that would not help with determining the effects of a transaction on the accounts would be a(n) C) advertising brochure. This is because an advertising brochure typically contains marketing and promotional information and does not reflect a financial transaction or its effect on financial accounts.

Determining M1 and M2

Regarding the classification of various monetary assets into M1 and M2:

a. Line of credit - Neither M1 nor M2 because it is not money, but rather the potential to borrow money.

b. Traveler's checks - M1, as these are included in the most liquid forms of money.

c. Quarters in your pocket - M1, as this is considered to be cash in circulation.

d. Checking account - M1, because funds in checking accounts are readily accessible for transactions.

e. Money market account - M2, as these funds require more steps to access than M1 and are considered to be near money.

User Sarit Bahuguna
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