Employees of Robert Rogers,CPA worked during the last two weeks of December.They received their paychecks on January 2.The matching principle would require that which of the following accounts appear on the income statement for the year ended December 31?
A) Salary expense
B) Prepaid expense
C) Salaries payable
D) Unearned revenue

Question

Quizplus · Accepted Answer

The matching principle requires that expenses be recognized in the period in which the corresponding revenue is recognized. Therefore, the salary expense incurred by Robert Rogers, CPA during the last two weeks of December should be recognized in the income statement for the year ended December 31. Prepaid expense would be recognized on the balance sheet as an asset, salaries payable would be a liability, and unearned revenue would be revenue received in advance of services provided.

Employees of Robert Rogers,CPA Worked During the Last Two Weeks