Final answer:
In accounting, a bank's balance sheet lists its assets, liabilities, and net worth. Assets include reserves, bonds, and loans, while liabilities represent what the bank owes to others, such as deposits. Net worth is determined by subtracting liabilities from assets. On a bank's T-account, assets will always equal liabilities plus net worth.
Step-by-step explanation:
In accounting, a bank's balance sheet lists its assets and liabilities. Assets are the financial instruments owned by the bank, such as reserves, bonds, and loans. Liabilities represent what the bank owes to others, such as deposits made by customers. The net worth of the bank, also known as its equity, is calculated by subtracting its liabilities from its assets and is included on the liabilities side to balance the T-account. For a healthy business, net worth will be positive, while for a bankrupt firm, it will be negative. On a bank's T-account, assets will always equal liabilities plus net worth.