Matching balance sheet components to descriptions

Steps:

• Identify description 1 as owner's contributions, which define capital.
• Identify description 2 as obligations like payables and loans, which define liabilities.
• Identify description 3 as resources like cash and inventory, which define assets.
• Match to option D: 1 capital, 2 liabilities, 3 assets.

Why D is correct:

• In accounting, the balance sheet equation (Assets = Liabilities + Capital) assigns owner's investments to capital, debts to liabilities, and business resources to assets.

Why the others are wrong:

• A misassigns owner's resources to assets and obligations to capital.
• B repeats the sequence without proper labeling for 1, 2, 3.
• C provides no matching.

Final answer: D