Final answer:
Unearned Revenue is not typically classified as a long-term liability; it is a current liability. M1 includes traveler's checks, quarters, and checking account balances, while a money market account is included in M2. A line of credit is neither M1 nor M2.
Step-by-step explanation:
The student asked which of the following is not typically classified as a long-term liability: Unearned Revenue, Bonds Payable, Lease Payable, Mortgage Payable. The correct answer is Unearned Revenue, which is typically recorded as a current liability because it represents money received for goods or services that are yet to be provided and is expected to be earned within one year. On the other hand, Bonds Payable, Lease Payable, and Mortgage Payable are all considered long-term liabilities, as they are obligations that are due after more than one year.
M1 and M2 Money Supply Components
For the list of items provided, here's how they fit into the categories of M1 and M2:
- a. Line of credit: Neither M1 nor M2 as it is a borrowing capacity rather than actual money.
- b. Traveler's checks: M1 as they are a component of the money supply and are considered to be money available for spending.
- c. Quarters in your pocket: M1 because it is a physical currency in circulation.
- d. Checking account: M1 since checking account balances are included in the most liquid form of the money supply.
- e. Money market account: M2 because it includes M1 components plus short-term time deposits and other liquid assets that are not quite as readily available as M1 assets.