What is a Drawing Account primarily used for?

A Drawing Account is primarily used to record the owner's cash withdrawals from the business. This account is essential in accounting for sole proprietorships or partnerships, as it helps to track the amounts that the owner takes out of the business for personal use. These withdrawals are important to monitor since they affect the overall equity of the owner in the business.

The use of a Drawing Account allows for a clear distinction between the business's profits and the owner's personal withdrawals. This helps in maintaining accurate financial records and ensures that the owner's equity can be properly assessed at any given time. Keeping track of these withdrawals can also aid in financial planning and tax reporting.

In contrast, other options relate to different aspects of accounting. Recording business profits pertains to the income statement rather than a drawing account, tracking employee salaries is a function associated with payroll accounts, and documenting company expenses generally corresponds with expense accounts. Each of these serves a different purpose in financial reporting and business operations.