Final answer:
The annual assessment of assets, liabilities, and equity is known as a Balance Sheet, which shows a company's financial status, including its net worth or capital, at a particular time.Thus the correct option is B.
Step-by-step explanation:
The annual assessment of a company's assets, liabilities, and equity is known as a Balance Sheet. A balance sheet provides a snapshot of a company's financial situation at a specific point in time, outlining what the company owns (assets), what it owes (liabilities), and the shareholders' equity, which is calculated as assets minus liabilities. This financial statement is critical for understanding a company's net worth or capital. Assets can include cash, accounts receivable, inventory, and fixed assets like property and equipment. Liabilities represent debts and obligations, such as loans, accounts payable, and mortgages.
A bank's balance sheet follows the same principles, with assets like cash held in vaults, reserves at the Federal Reserve, loans made to customers, and securities. A bank's liabilities could include customer deposits and borrowed funds. The difference between a bank's assets and liabilities is known as bank capital, which reflects the bank's net worth.