The owner's equity or the owner's financial interest in a business.

• A. Proprietorship
• B. Transaction
• C. Supplies
• D. Cost

Answer: (A)

The owner's financial stake in a business is described by a proprietorship. A sole proprietorship is a business owned and run by one person, so the owner’s equity—their claim on the business assets after liabilities—fits naturally with this term. The proprietor’s investments and the profits they earn increase that equity, while withdrawals or losses decrease it, tying ownership directly to the financial interest in the business. The other terms don’t capture ownership: a transaction is a business event, supplies are assets used in operations, and cost is the amount paid to obtain something.