Which of the following entries would be made because of the matching principle?
A) $$\begin{array} { | c | r | r | }
\hline \text { Salaries Expense } & 1,000 & \
\hline \text { Accounts Payable } & & 1,000 \
\hline
\end{array}$$
B) $$\begin{array} { | c | r | r | }
\hline \text { Cash } & 1,000 & \
\hline \text { Salaries Expense } & & 1,000 \
\hline
\end{array}$$
C) $$\begin{array} { | c | r | r | }
\hline \text { Salaries Expense } & 1,000 & \
\hline \text { Salaries Payable } & & 1,000 \
\hline
\end{array}$$
D) $$\begin{array} { | c | r | r | }
\hline \text { Cash } & 1,000 & \
\hline \text { Unearned Revenue } & & 1,000 \
\hline
\end{array}$$

Question

Which of the following entries would be made because of the matching principle?
A) $$\begin{array} { | c | r | r | } 
\hline \text { Salaries Expense } & 1,000 & \
\hline \text { Accounts Payable } & & 1,000 \
\hline
\end{array}$$
B) $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 1,000 & \
\hline \text { Salaries Expense } & & 1,000 \
\hline
\end{array}$$
C) $$\begin{array} { | c | r | r | } 
\hline \text { Salaries Expense } & 1,000 & \
\hline \text { Salaries Payable } & & 1,000 \
\hline
\end{array}$$
D) $$\begin{array} { | c | r | r | } 
\hline \text { Cash } & 1,000 & \
\hline \text { Unearned Revenue } & & 1,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The matching principle requires that expenses be recognized in the same period as the revenues they help to generate. In this case, the Salaries Expense entry is being matched with the period it was incurred in by also recording the Salaries Payable liability (indicating that the company owes the money for the salaries it paid).

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