Final answer:
A T-account is a visual accounting tool that separates a bank's assets from its liabilities and net worth to show financial health. It ensures that assets always equal liabilities plus net worth, indicating a company's solvency.
Step-by-step explanation:
The question concerns the concept of T-accounts used in accounting, particularly as it relates to banking. A T-account is a visual representation of the accounts of a company, showing assets on one side and liabilities on the other. The 'T' separates these two crucial categories. For banks, assets might include reserves or loans made, while liabilities consist of deposits and other obligations. The net worth or equity is accounted for on the liabilities side to ensure that the account balances, which means that assets equal liabilities plus net worth. This structure is convenient for representing the financial health of a business, showing clearly whether a company has a positive net worth (healthy) or negative net worth (potentially bankrupt).