The employees of Kostner Financial Services Inc.worked the last two weeks of December,2014.They received their paychecks on January 2.Which of the following accounts should appear on the income statement for the year ended December 31,2014,as per the matching principle?

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The matching principle requires that expenses should be recognized in the same accounting period as the related revenue. In this case, the employees worked in December 2014, and their paychecks were received in January 2015. Therefore, the salary expense should be recognized in December 2014, which is the period in which the revenue was earned. Choice B) Prepaid Expense is not relevant because it refers to expenses paid in advance that will be recognized as expenses in the future. Choice C) Salaries Payable is a liability account that represents the amount owed to employees as of December 31, 2014, but it does not reflect the expense incurred during the period. Choice D) Unearned Revenue is a liability account that represents the amount received in advance for goods or services that have not been provided yet. It is not relevant in this case because the company did not receive any unearned revenue.

The Employees of Kostner Financial Services Inc