MGMT 200 FINAL EXAM CHAPTERS 8-12 | COMPLETE AND
GRADED QUESTIONS AND ANSWERS 2026 LATEST UPDATED | 100%
GRADED CORRECT | 100% GUARANTEED TO PASS | GET A+
What time period separates a current liability from a long-term liability? - (ANSWER)one year
from the balance sheet date
T or F: Current liabilities can be shorter than a year. - (ANSWER)False
operating cycle - (ANSWER)the length of time from spending cash to provide goods and
services to a customer until collection of cash from that customer
Do notes payable usually use short or long-term debt? - (ANSWER)short-term; offers lower
interest rates
What is the journal entry for recording a notes payable? - (ANSWER)debit cash, credit notes
payable
What is the journal entry for recording interest on a note payable? - (ANSWER)debit interest
expense, credit interest payable
,What is the journal entry for the repayment of notes payable? - (ANSWER)debit notes payable,
debit interest expense, debit interest payable, credit cash
line of credit - (ANSWER)a prearranged agreement between a company and a financial
institution that allows the company to borrow as needed up to a certain amount
commercial paper - (ANSWER)one company borrowing from another company rather than
from a bank
payroll liabilities - (ANSWER)make up a significant portion of current liabilities for these
companies
What four things do employees pay for? - (ANSWER)1) Federal and state income taxes
2) FICA
3) Health, dental, disability, and life insurance premiums
4) Employee investments in retirement or savings plans
What four things do employers pay for? - (ANSWER)1) Federal and state unemployment taxes
2) FICA
, 3) Insurance plans
4) Employer contribution to retirement or savings plans
fringe benefits - (ANSWER)payments to employees other than wages or salary
What is the journal entry for recording payroll liabilities? - (ANSWER)debit salaries expense,
credit employee income tax payable, FICA tax payable, and salaries payable
deferred revenue - (ANSWER)cash received in advance from a customer for products or
services to be provided in the future; liability
sales tax payable - (ANSWER)sales tax collected from customers by the seller, representing
current liabilities payable to the government
What is the sales tax formula? - (ANSWER)total cash paid - (total cash paid/1+sales tax rate)
When is a contingent liability recorded? - (ANSWER)if a loss is probable and the amount is
reasonably estimable
GRADED QUESTIONS AND ANSWERS 2026 LATEST UPDATED | 100%
GRADED CORRECT | 100% GUARANTEED TO PASS | GET A+
What time period separates a current liability from a long-term liability? - (ANSWER)one year
from the balance sheet date
T or F: Current liabilities can be shorter than a year. - (ANSWER)False
operating cycle - (ANSWER)the length of time from spending cash to provide goods and
services to a customer until collection of cash from that customer
Do notes payable usually use short or long-term debt? - (ANSWER)short-term; offers lower
interest rates
What is the journal entry for recording a notes payable? - (ANSWER)debit cash, credit notes
payable
What is the journal entry for recording interest on a note payable? - (ANSWER)debit interest
expense, credit interest payable
,What is the journal entry for the repayment of notes payable? - (ANSWER)debit notes payable,
debit interest expense, debit interest payable, credit cash
line of credit - (ANSWER)a prearranged agreement between a company and a financial
institution that allows the company to borrow as needed up to a certain amount
commercial paper - (ANSWER)one company borrowing from another company rather than
from a bank
payroll liabilities - (ANSWER)make up a significant portion of current liabilities for these
companies
What four things do employees pay for? - (ANSWER)1) Federal and state income taxes
2) FICA
3) Health, dental, disability, and life insurance premiums
4) Employee investments in retirement or savings plans
What four things do employers pay for? - (ANSWER)1) Federal and state unemployment taxes
2) FICA
, 3) Insurance plans
4) Employer contribution to retirement or savings plans
fringe benefits - (ANSWER)payments to employees other than wages or salary
What is the journal entry for recording payroll liabilities? - (ANSWER)debit salaries expense,
credit employee income tax payable, FICA tax payable, and salaries payable
deferred revenue - (ANSWER)cash received in advance from a customer for products or
services to be provided in the future; liability
sales tax payable - (ANSWER)sales tax collected from customers by the seller, representing
current liabilities payable to the government
What is the sales tax formula? - (ANSWER)total cash paid - (total cash paid/1+sales tax rate)
When is a contingent liability recorded? - (ANSWER)if a loss is probable and the amount is
reasonably estimable
