Which of the following entries would be made because of the matching principle?
A) $$\begin{array} { | c | r | r | }
\hline \text { Salaries Expense } & 1,000 & \
\hline \text { Service Revenue } & & 1,000 \
\hline
\end{array}$$
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) $$\begin{array} { | c | r | r | } 
\hline \text { Salaries Expense } & 1,000 & \
\hline \text { Service Revenue } & & 1,000 \
\hline
\end{array}$$
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 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. Option C correctly matches the expense (Salaries Expense) with the period it was incurred by recognizing a payable, rather than the payment itself.

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