Many mobs around Block Story drop items, these items are frequently called drops or loot for obvious reasons.
Many mobs have their own drop table, a drop table is a table that lays out the chances for the mobs to drop that item.
This table states that the example mob will drop (when killed) 1-5 gold 100% of the time, and only 11% of the time will drop one sword.
(this page is mostly for example and to keep the wiki organized.)
During 10.2.6 Update Items could Destroyed only Lava or Acid