Which of the following entries would be made because of the matching principle?
A) $$\begin{array} { | c | r | r | }
\hline \text { Rent Expense } & 2,500 & \
\hline \text { Rent Revenue } & & 2,500 \
\hline
\end{array}$$
B) $$\begin{array} { | c | r | r | }
\hline \text { Unearned Revenue } & 2,500 & \
\hline \text { Cash } & & 2,500 \
\hline
\end{array}$$
C) $$\begin{array} { | c | r | r | }
\hline \text { Rent Expense } & 2,500 & \
\hline \text { Unearned Rent } & & 2,500 \
\hline
\end{array}$$
D) $$\begin{array} { | c | r | r | }
\hline \text { Rent Expense } & 2,500 & \
\hline \text { Prepaid Rent } & & 2,500 \
\hline
\end{array}$$

Question

Which of the following entries would be made because of the matching principle?
A) $$\begin{array} { | c | r | r | } 
\hline \text { Rent Expense } & 2,500 & \
\hline \text { Rent Revenue } & & 2,500 \
\hline
\end{array}$$
B) $$\begin{array} { | c | r | r | } 
\hline \text { Unearned Revenue } & 2,500 & \
\hline \text { Cash } & & 2,500 \
\hline
\end{array}$$
C) $$\begin{array} { | c | r | r | } 
\hline \text { Rent Expense } & 2,500 & \
\hline \text { Unearned Rent } & & 2,500 \
\hline
\end{array}$$
D) $$\begin{array} { | c | r | r | } 
\hline \text { Rent Expense } & 2,500 & \
\hline \text { Prepaid Rent } & & 2,500 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The matching principle in accounting states that expenses should be recorded in the period in which they are incurred to generate revenues. Option D reflects this principle by matching the rent expense (an expense incurred) with the use of prepaid rent (an asset used up) within the same period, which is consistent with the matching principle.

Which of the Following Entries Would Be Made Because of the Matching