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

B) $\begin{array}{|l|r|r|}
\hline \text { Unearned Revenue } & 2,500 \
\hline \text { Cash } &&2,500 \
\hline
\end{array}$
C) $\begin{array}{|l|r|r|}
\hline \text { Rent Expense } & 2,500 \
\hline \text { Unearned Rent } &&2,500 \
\hline
\end{array}$
D) $\begin{array}{|l|r|l|}
\hline \text { Rent Expense } & 2,500 & \
\hline \text { Prepaid Rent } & & 2,500 \
\hline
\end{array}$

Question

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

B) $\begin{array}{|l|r|r|}
\hline \text { Unearned Revenue } & 2,500 \
\hline \text { Cash } &&2,500 \
\hline
\end{array}$
C) $\begin{array}{|l|r|r|}
\hline \text { Rent Expense } & 2,500 \
\hline \text { Unearned Rent } &&2,500 \
\hline
\end{array}$
D) $\begin{array}{|l|r|l|}
\hline \text { Rent Expense } & 2,500 & \
\hline \text { Prepaid Rent } & & 2,500 \
\hline
\end{array}$

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, regardless of when the payment is made. Option D reflects this principle by recording rent expense in the period it is incurred, with the offset to prepaid rent, indicating that the payment was made in advance for future periods.

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