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

question 30

Multiple Choice

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

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Rent Expense } & 2,500 & \\
• \hline \text { Rent Revenue } & & 2,500 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Unearned Revenue } & 2,500 & \\
• \hline \text { Cash } & & 2,500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Rent Expense } & 2,500 & \\
• \hline \text { Unearned Rent } & & 2,500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Rent Expense } & 2,500 & \\
• \hline \text { Prepaid Rent } & & 2,500 \\
• \hline
• \end{array}\]

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Definitions:

Optimal Combination

The most favorable mix of goods, services, or resources to achieve the highest level of satisfaction or output with given resources and constraints.

Efficiency

The property of a resource allocation of maximizing the total surplus received by all members of society.

Equality

The property of distributing economic prosperity uniformly among the members of society.

Decision Making

The cognitive process resulting in selecting a course of action among several alternatives.