Question 7 (1 point) Which of the following accounts is an owner's equity account? Cash Accounts Payable Prepaid Insurance Capital

Owner's equity represents the owner’s claims to the assets of a business, and "Capital" is the correct choice here! It reflects the amount invested by the owners or shareholders in the company, essentially showcasing the financial stake they hold in the business. On the other hand, Cash, Accounts Payable, and Prepaid Insurance are considered assets and liabilities. Cash is a valuable resource, Accounts Payable shows what you owe, and Prepaid Insurance is an asset that represents future benefits. So making distinctions between these categories is key in accounting!