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

question 1

Multiple Choice

Which of the following entries would be made because of the matching principle?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Salary expense } & 1,000 & \\
• \hline \text { Accounts payable } & & 1,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Salary expense } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Salary expense } & 1,000 & \\
• \hline \text { Salary payable } & & 1,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Unearned revenue } & & 1,000 \\
• \hline
• \end{array}\]

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Definitions:

Spot Price

The current market price at which a particular asset, such as a commodity, currency, or security, can be bought or sold for immediate delivery.

Silver Spot Price

The current market price at which silver can be bought or sold for immediate delivery.

Silver Future

A standardized, exchange-traded contract to buy or sell a specific amount of silver at a future date and price.

Loss

The reduction in value experienced by an investment or business operation when expenses exceed revenues.