Final answer:
True, a balance sheet does report financial information on a specific date and includes assets, liabilities, and owner's equity. It provides a snapshot of the company's financial standing, detailing what the company owns and owes, and shows its net worth.
Step-by-step explanation:
The statement that a balance sheet reports financial information on a specific date and includes assets, liabilities, and owner's equity is true. A balance sheet is a snapshot of a company's financial condition at a single point in time. It lists the assets, which are resources of value owned by the company such as cash and property. On the other side, it lists liabilities, which represent debts and obligations owed by the company. The difference between the company's assets and liabilities shows the net worth or owner's equity, which is also referred to as the company's capital.
In the context of a bank, assets might include cash held in vaults, loans made to customers, and securities like U.S. Treasury bonds. Liabilities would encompass deposits held by customers and other debts. The net worth of the bank is calculated by subtracting total liabilities from total assets, and this figure is included on the liabilities side of the T-account to balance it. A positive net worth indicates a healthy financial standing, while a negative net worth may suggest insolvency.