Final answer:
The balance sheet is the financial statement that reports assets, liabilities, and equity, formatted with two columns resembling a T-account to display the entity's financial position at a particular moment.
Step-by-step explanation:
The financial statement that includes Assets, Liabilities, and Equity is the balance sheet. A balance sheet is formatted like a T-account, with two columns separated by a vertical line: one for assets and the other for liabilities and equity, with the headline across a horizontal line. Assets represent things of value that an individual or entity owns. Liabilities are debts or obligations owed to others. Equity represents the owner's interest in the company, calculated as the difference between assets and liabilities.
This statement provides a snapshot of an entity's financial position at a specific point in time, reflecting the net worth or capital, in the case of a bank's balance sheet. The format of the balance sheet allows for easy comparison of what is owned versus what is owed, playing a fundamental role in financial analysis and decision-making.