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

question 38

Multiple Choice

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

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

Explain the proper accounting treatment for gain and loss contingencies.

Analyze and prepare journal entries for payroll and payroll taxes.

Understand the conditions under which short-term obligations can be classified as long-term liabilities.

Explain the GAAP requirements for accounting for compensated absences.

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Definitions:

Probate Court

A specialized judicial body that handles matters pertaining to wills, estates, and the distribution of a deceased person's assets.

Deceased Person's Estate

All the assets and liabilities left by an individual after death, which are subject to management and distribution.

District Courts

Lower federal courts where most federal legal cases begin, handling a broad range of civil and criminal cases.

Federal Court System

The network of courts established by the federal government of a country, dealing with issues that pertain to national laws and constitution.