MGMT 200 ACTUAL FINAL EXAM | 110 COMPLETE AND GRADED
QUESTIONS AND ANSWERS 2026 LATEST UPDATED | 100% GRADED
CORRECT | 100% GUARANTEED TO PASS | GET A+
1. liability: an obligation of a company to transfer some economic benefit in
the future
2. Which liabilities require payment in the future?: Accounts payable Notes
Payable
Salaries Payable
3. When does deferred revenue arise?: when companies receive payment in
advance
4. What is a current liability?: A liability expected to be paid within 1 year of
balance sheet date
5. What is a long-term liability?: payable in more than one year from balance
sheet date
,6. What is the operating cycle?: the length in time from spending cash to
provide goods/services to a customer until collection of cash from that
customer
7. What does a company with a 3 month operating cycle do with their
liabilities?-
: classifies current liabilities as those due in 1 year
8. What does a company with a 15 month operating cycle do with their
liabilities?: classifies current liabilities as those due within 15 months
9. What is notes payable?: A written promise made by the business to pay a
debt, usually involving interest, in the future.
10. How to calculate Interest on notes payable?: Face Value x Annual
Interest Rate x Fraction of the year
11. How do you record Notes Payable?: debit cash, credit notes payable
12. Southwest Airlines borrows $100,000 from Bank of America on
September 1,2024, signing a 6%, six-month note for the amount borrowed
plus accrued interest due six months later on March 1, 2025.
, On September 1, 2024, Southwest will receive $100,000 in cash and record the
following:: debit cash 100,000 credit notes payable 100,000
13. Southwest Airlines borrows $100,000 from Bank of America on
September 1,2024, signing a 6%, six-month note for the amount borrowed
plus accrued interest due six months later on March 1, 2025.
How do you calculate the Interest for the 6 month period?: 100,000 X.06 X
6/12 = 3000
14. Southwest Airlines borrows $100,000 from Bank of America on
September
1,2024, signing a 6%, six-month note for the amount borrowed plus accrued
interest due six months later on March 1, 2025.
How do you calculate the Interest for the 4 month period? What would be the
Adjusted journal Entry?: 100,000 x .06 x 4/12 = 2000, Debit to Interest Expense
2000 and Credit to interest
Payable 2000
QUESTIONS AND ANSWERS 2026 LATEST UPDATED | 100% GRADED
CORRECT | 100% GUARANTEED TO PASS | GET A+
1. liability: an obligation of a company to transfer some economic benefit in
the future
2. Which liabilities require payment in the future?: Accounts payable Notes
Payable
Salaries Payable
3. When does deferred revenue arise?: when companies receive payment in
advance
4. What is a current liability?: A liability expected to be paid within 1 year of
balance sheet date
5. What is a long-term liability?: payable in more than one year from balance
sheet date
,6. What is the operating cycle?: the length in time from spending cash to
provide goods/services to a customer until collection of cash from that
customer
7. What does a company with a 3 month operating cycle do with their
liabilities?-
: classifies current liabilities as those due in 1 year
8. What does a company with a 15 month operating cycle do with their
liabilities?: classifies current liabilities as those due within 15 months
9. What is notes payable?: A written promise made by the business to pay a
debt, usually involving interest, in the future.
10. How to calculate Interest on notes payable?: Face Value x Annual
Interest Rate x Fraction of the year
11. How do you record Notes Payable?: debit cash, credit notes payable
12. Southwest Airlines borrows $100,000 from Bank of America on
September 1,2024, signing a 6%, six-month note for the amount borrowed
plus accrued interest due six months later on March 1, 2025.
, On September 1, 2024, Southwest will receive $100,000 in cash and record the
following:: debit cash 100,000 credit notes payable 100,000
13. Southwest Airlines borrows $100,000 from Bank of America on
September 1,2024, signing a 6%, six-month note for the amount borrowed
plus accrued interest due six months later on March 1, 2025.
How do you calculate the Interest for the 6 month period?: 100,000 X.06 X
6/12 = 3000
14. Southwest Airlines borrows $100,000 from Bank of America on
September
1,2024, signing a 6%, six-month note for the amount borrowed plus accrued
interest due six months later on March 1, 2025.
How do you calculate the Interest for the 4 month period? What would be the
Adjusted journal Entry?: 100,000 x .06 x 4/12 = 2000, Debit to Interest Expense
2000 and Credit to interest
Payable 2000
