The correct answer is A. Drawings.
Drawings are the amounts of money that the owner of a business takes out of the business for personal use. They are recorded in the owner’s equity account, which is called Drawings.
Cash is the money that a business has on hand. It is recorded in the asset account, which is called Cash.
Business is the name of the business. It is not an account that is used in accounting.
Stock is the ownership interest in a corporation. It is recorded in the equity account, which is called Stock.
Here is a simple example of how drawings are recorded in accounting:
Suppose that the owner of a business withdraws $100 from the business for personal use. The following journal entry would be recorded:
Dr. Drawings $100
Cr. Cash $100
This entry would increase the owner’s equity account, Drawings, by $100 and decrease the asset account, Cash, by $100.