For each of the following items, identify the appropriate financial statement element: (A) Cash, (B) Sales Revenue, (C) Accounts Payable, (D) Rent Expense. Which of the following correctly matches each item to its financial statement element?A. (A) Asset, (B) Revenue, (C) Liability, (D) ExpenseB. (A) Liability, (B) Expense, (C) Asset, (D) RevenueC. (A) Revenue, (B) Asset, (C) Expense, (D) LiabilityD. (A) Expense, (B) Liability, (C) Revenue, (D) Asset

• A. C. (A) Revenue, (B) Asset, (C) Expense, (D) Liability
• B. D. (A) Expense, (B) Liability, (C) Revenue, (D) Asset
• C. A. (A) Asset, (B) Revenue, (C) Liability, (D) Expense
• D. B. (A) Liability, (B) Expense, (C) Asset, (D) Revenue

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the financial statement elements. The four primary elements are: (1) Asset - resources owned by the company, (2) Liability - obligations owed by the company, (3) Revenue - income earned from business operations, and (4) Expense - costs incurred to generate revenue.
2. Step 2: Analyze each item in the problem: (A) Cash is a resource owned by the company, so it is classified as an Asset. (B) Sales Revenue represents income earned from selling goods or services, so it is classified as Revenue. (C) Accounts Payable represents obligations to pay suppliers, so it is classified as a Liability. (D) Rent Expense represents costs incurred for using rented space, so it is classified as an Expense.
3. Step 3: Match each item to its corresponding financial statement element: (A) Cash = Asset, (B) Sales Revenue = Revenue, (C) Accounts Payable = Liability, (D) Rent Expense = Expense.
4. Step 4: Review the provided answer choices to determine which one correctly matches the items to their financial statement elements. Compare each choice to the classifications determined in Step 3.
5. Step 5: Identify the correct answer as the one that matches: (A) Asset, (B) Revenue, (C) Liability, (D) Expense. This corresponds to answer choice A.