Question

Equipment will be listed in the Property, Plant and Equipment section of the Balance Sheet. It will be shown at net book value (cost of the asset less any Accumulated Depreciation).

Answer 1

The net book value of equipment on a balance sheet is its cost minus accumulated depreciation. A bank's balance sheet, which lists assets and liabilities, demonstrates the value of net worth or bank capital. The T-account visual tool helps represent this balance.

Step-by-step explanation:

The question pertains to the reporting of equipment on a company's balance sheet under the Property, Plant, and Equipment section. This form of reporting shows the net book value of the equipment, which is calculated by subtracting the accumulated depreciation from the original cost of the asset. A bank's balance sheet, which is a financial statement listing assets and liabilities, operates under the same principles. The assets can include cash, loans made to customers, and U.S. government securities, among others, while liabilities primarily consist of customer deposits and debts owed by the bank. The net worth or bank capital is derived by deducting total liabilities from total assets, which is critical in determining the financial health of the bank. Additionally, the concept of a T-account is used to visually represent and balance a firm's assets and liabilities, showing the relationship between the two.