Which of the following is an asset on a company's balance sheet?

The correct identification of an asset on a company's balance sheet is crucial for understanding a company's financial position. Capital, in the context of the balance sheet, refers to the equity stake that shareholders have in the company, including investments made by the owners and retained earnings. However, it is important to clarify that capital itself is not categorized strictly as an asset; it is part of the equity section.

In contrast, assets on a balance sheet typically include things like cash, accounts receivable, inventory, and property. Accounts Payable represents a liability, not an asset, as it reflects amounts a company owes to its suppliers. Similarly, debts owed to suppliers also categorize as a liability. Interest expense pertains to costs incurred on borrowed funds and is recorded on the income statement, not categorized as an asset.

Understanding the correct distinction helps in grasping the overall financial health and equity structure of a business. An asset represents resources owned or controlled by a company that are expected to bring future economic benefits, which is not reflected in the answer choice provided.