UCSB Econ 3B Final Exam (2026) Complete
Questions & Verified Correct Answers
Current liability - CORRECT ANSWER -1. Expects to pay debt from existing current assets or
through creation of other current liabilities
2. Will pay debt w/in 1 year or operating cycle, whichever is longer
Notes payable - CORRECT ANSWER -written promissory note, require borrower to pay interest
Sales tax payable - CORRECT ANSWER -expressed as a stated % of sales price. Retailer collects
tax from customer then remits it to state
Unearned revenue - CORRECT ANSWER -revenue received before the company delivers goods or
provides services
Current maturities of long-term debt - CORRECT ANSWER -portion of long-term debt that comes
due in current year
Payroll - CORRECT ANSWER -salaries - monthly or yearly rate
Wages - rate per hour
Payroll tax expense - CORRECT ANSWER -3 taxes that gov't agencies levy on employers -- FICA
tax, federal unemployment tax, state unemployment tax
Journal entry: debit salaries and wages expense - CORRECT ANSWER -credit FICA tax payable
Credit federal tax payable
Credit state tax payable
Credit salaries and wages payable
, Journal entry: debit payroll tax expense - CORRECT ANSWER -credit FICA tax payable
Credit federal unemployment tax payable
Credit state unemployment tax payable
Bonds - CORRECT ANSWER -long-term liability
A form of interest-bearing notes payable issued by corporations, universities, or gov't agencies
Sold in small denominations
4 types of bonds - CORRECT ANSWER -secured, unsecured, convertible, callable
Face value - CORRECT ANSWER -principal due at the maturity date
Maturity date - CORRECT ANSWER -date final payment is due
The process of finding the present value is referred to as - CORRECT ANSWER -discounting the
future amounts
3 factors that determine present value - CORRECT ANSWER -1. Dollar amounts to be received
2. Length of time until the amounts are received
3. Market rate of interest
Market interest rate - CORRECT ANSWER -the rate of interest investors demand for loaning
funds to a corporation
Questions & Verified Correct Answers
Current liability - CORRECT ANSWER -1. Expects to pay debt from existing current assets or
through creation of other current liabilities
2. Will pay debt w/in 1 year or operating cycle, whichever is longer
Notes payable - CORRECT ANSWER -written promissory note, require borrower to pay interest
Sales tax payable - CORRECT ANSWER -expressed as a stated % of sales price. Retailer collects
tax from customer then remits it to state
Unearned revenue - CORRECT ANSWER -revenue received before the company delivers goods or
provides services
Current maturities of long-term debt - CORRECT ANSWER -portion of long-term debt that comes
due in current year
Payroll - CORRECT ANSWER -salaries - monthly or yearly rate
Wages - rate per hour
Payroll tax expense - CORRECT ANSWER -3 taxes that gov't agencies levy on employers -- FICA
tax, federal unemployment tax, state unemployment tax
Journal entry: debit salaries and wages expense - CORRECT ANSWER -credit FICA tax payable
Credit federal tax payable
Credit state tax payable
Credit salaries and wages payable
, Journal entry: debit payroll tax expense - CORRECT ANSWER -credit FICA tax payable
Credit federal unemployment tax payable
Credit state unemployment tax payable
Bonds - CORRECT ANSWER -long-term liability
A form of interest-bearing notes payable issued by corporations, universities, or gov't agencies
Sold in small denominations
4 types of bonds - CORRECT ANSWER -secured, unsecured, convertible, callable
Face value - CORRECT ANSWER -principal due at the maturity date
Maturity date - CORRECT ANSWER -date final payment is due
The process of finding the present value is referred to as - CORRECT ANSWER -discounting the
future amounts
3 factors that determine present value - CORRECT ANSWER -1. Dollar amounts to be received
2. Length of time until the amounts are received
3. Market rate of interest
Market interest rate - CORRECT ANSWER -the rate of interest investors demand for loaning
funds to a corporation
