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

question 3

Multiple Choice

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

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Salaries Expense } & 1,000 & \\
• \hline \text { Service Revenue } & & 1,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Salaries Expense } & & 1,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Salaries Expense } & 1,000 & \\
• \hline \text { Salaries Payable } & & 1,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 1,000 & \\
• \hline \text { Unearned Revenue } & & 1,000 \\
• \hline
• \end{array}\]

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Definitions:

Taxable Income

The portion of an individual's or company's income used to determine how much tax is owed to the government.

Government Spending

Expenditures made by the government sector on goods and services, including infrastructure, education, and defense.

Taxes

Essential monetary obligations or assorted forms of taxes imposed on individuals by government organizations, designed to facilitate government budgeting and various public expenditure.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total tax paid by the taxpayer’s total income.