Final answer:
True, a balance sheet represents a company's assets, liabilities, and owner's equity at a specific point in time. It includes everything a company owns and owes, with the difference being the net worth or owner's equity. A bank's balance sheet also includes items like cash reserves and customer deposits.
Step-by-step explanation:
The statement that a balance sheet represents the assets, liabilities, and owner's equity of a company at a given point in time is true. A balance sheet is a financial statement that provides a snapshot of a company's financial condition at a particular moment. On the assets side, it lists everything the company owns that has value, such as cash in the bank, inventory, property, and equipment. The liabilities section details what the company owes, like loans and mortgages. The difference between these two is known as the owner's equity or net worth. For a bank's balance sheet, it might include assets such as cash in the vaults or reserves held at the Federal Reserve, and liabilities like customer deposits. The 'T' in a T-account provides a simplified representation, separating assets on the left from liabilities on the right, with net worth included on the liability side to make the balance sheet balance.