Which of the following entries would be made because of the matching principle?
A) $$\begin{array} { | l | r | r | }
\hline \text { Salary expense } & 1,000 & \
\hline \text { Accounts payable } & & 1,000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 1,000 & \
\hline \text { Salary expense } & & 1,000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | }
\hline \text { Salary expense } & 1,000 & \
\hline \text { Salary payable } & & 1,000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | }
\hline \text { Cash } & 1,000 & \
\hline \text { Unearned revenue } & & 1,000 \
\hline
\end{array}$$

Question

Which of the following entries would be made because of the matching principle?
A) $$\begin{array} { | l | r | r | } 
\hline \text { Salary expense } & 1,000 & \
\hline \text { Accounts payable } & & 1,000 \
\hline
\end{array}$$
B) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1,000 & \
\hline \text { Salary expense } & & 1,000 \
\hline
\end{array}$$
C) $$\begin{array} { | l | r | r | } 
\hline \text { Salary expense } & 1,000 & \
\hline \text { Salary payable } & & 1,000 \
\hline
\end{array}$$
D) $$\begin{array} { | l | r | r | } 
\hline \text { Cash } & 1,000 & \
\hline \text { Unearned revenue } & & 1,000 \
\hline
\end{array}$$

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, regardless of when the payment is made. Entry C matches salary expense (an expense incurred) with salary payable (a liability account representing salaries that have been incurred but not yet paid), which aligns with the matching principle.

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