In financial terms, what are 'drawings'?

In financial terms, 'drawings' refer specifically to the assets or funds that owners take out of a business for personal use. This concept is particularly relevant in sole proprietorships or partnerships where the owners withdraw money or other assets from the business to cover personal expenses.

When owners make drawings, they decrease the equity of the business, as these withdrawals reduce the amount of capital that remains in the company. It's important for business owners to keep accurate records of drawings, as these transactions can affect financial statements and tax liabilities.

The other options do not accurately reflect the concept of 'drawings.' For instance, assets acquired by the company pertain to the resources that the business invests in to generate revenue, while funds allocated for marketing involve expenditures aimed at promoting the business. Investments made by shareholders typically refer to the capital contributed to the business rather than withdrawals made by the owners.