'Drawings' are categorized as which type of account?

Drawings are categorized as an equity account because they represent the owner's withdrawal of funds or assets from the business for personal use. When an owner withdraws money, it reduces the total equity of the business, reflecting that the owner's stake in the company is decreasing due to these withdrawals. This is an essential aspect of accounting for sole proprietorships or partnerships, as it directly affects the capital account and overall net worth of the business.

In contrast, classifications like non-current liabilities, income, or current liabilities do not accurately describe drawings. Non-current liabilities refer to long-term obligations, while income represents revenue generated by the business. Current liabilities, on the other hand, are short-term obligations that the business needs to settle within one year. Since drawings affect personal equity and ownership rather than liabilities or income, categorizing them as an equity account aligns with their nature in the financial statements.