Concept:The owner's claim on the assets of a business is called capital or owner's equity.
Explanation:A business has two kinds of claims on its assets.
Creditors have claims on the assets for amounts owed to them.
These creditor claims are known as liabilities.
The owner also has a claim on the assets after all liabilities are settled.
This remaining claim of the owner is called capital or owner's equity.
Hence, capital represents the owner's claim on business assets.
A loan is money borrowed by the business, so it is a liability, not an owner's claim.
Drawings are amounts withdrawn by the owner for personal use, and they reduce capital.
Liabilities are the creditors' claims, not the owner's claim.
Therefore, the correct answer is capital.
Answer:A. Capital