According to the matching principle, salary expense is recognized on the income statement when the salaries are paid rather than when the employee provides the work.

Question

Quizplus · Accepted Answer

According to the matching principle, salary expense should be recognized in the period in which the employee provides the work, not necessarily the period in which the salaries are paid. This is to ensure that expenses are matched with the revenue they helped generate during a given period.

According to the Matching Principle, Salary Expense Is Recognized on the Income