Final answer:
A trial balance is an accounting report listing each account's balance before adjustments, ensuring debits equal credits. A bank's balance sheet, which includes assets, liabilities, and net worth, reflects the same accounting principles, with total assets always matching the sum of liabilities plus net worth.
Step-by-step explanation:
The Concept of a Trial Balance
A trial balance is a fundamental accounting report that lists the balances in each of an entity's general ledger accounts before any adjusting entries are made. It is prepared to check the mathematical accuracy of the bookkeeping entries and ensure that for every debit entry, there is a corresponding credit entry, maintaining the accounting equation where assets equal liabilities plus equity. This is a crucial step in the accounting cycle and is performed at the end of a reporting period before financial statements are prepared.
Understanding a Bank's Balance Sheet
A bank's balance sheet is an illustration of this principle. The balance sheet shows the bank's assets, such as cash and loans made, and liabilities, including customer deposits and other debts. The difference between the assets and liabilities is the bank's net worth or bank capital. The balance sheet must balance with assets equaling liabilities plus net worth, and this is visually represented through a T-account format.