The employees of Robert Rogers, CPA, worked the last two weeks of December. They received their paychecks on January 2. Which of the following accounts should appear on the balance sheet as of December 31 as per the matching principle?
A)Accounts Payable
B)Salaries Payable
C)Salary Expense
D)Prepaid Expense

Question

Quizplus · Accepted Answer

According to the matching principle, expenses should be recorded in the period they are incurred. Since the employees worked in December, the salary expense should be recognized in December, and the corresponding liability, Salaries Payable, should appear on the balance sheet as of December 31.

The Employees of Robert Rogers, CPA, Worked the Last Two