Final answer:
The cost of a temporary building for construction workers would be recorded under 'assets' on a balance sheet, possibly as 'Construction in Progress.' A bank's balance sheet consists of assets, liabilities, and the net worth which reflects bank capital. Cash listed under assets may not be physically present as it can be diversified across loans, investments, and central bank reserves.
Step-by-step explanation:
Understanding the Balance Sheet for a Bank
The cost of a temporary building for workers during the construction of a permanent building would typically be recorded on a company's balance sheet under assets. This cost falls under the category of Construction in Progress or Capital Work-in-Progress, which is considered a part of the company's long-term assets. However, if this temporary building is not intended to be used for long-term purposes or for generating future economic benefits, it might alternatively be categorized as an expense in the income statement rather than capitalized as an asset.
On the bank's balance sheet, under assets, one might also find cash, loans issued to customers, and investments, among others. Liabilities would include customer deposits, money owed to other institutions, and any other debts. The difference between total assets and total liabilities is known as the net worth or bank capital, which also encompasses retained earnings and other forms of capital reserves.
It is important to understand that the money listed under assets on a bank balance sheet may not all be physically present in the bank as cash. Funds can be held in various forms including but not limited to loans to customers, investments, and reserves held at the central bank.