Final answer:
The balance sheet format is named a T-account, resembling the letter 'T' due to its two-column arrangement, with assets on one side and liabilities and stockholders' equity on the other.
Step-by-step explanation:
The balance sheet format listing liabilities and stockholders' equity directly below assets is called the T-account. This is a two-column format that resembles the shape of the letter 'T', with a vertical line down the middle and a horizontal line under the column headings for “Assets” on one side and “Liabilities and Stockholders' Equity” on the other side.
The assets are typically listed on the left side, with the liabilities and stockholders' equity listed on the right side. A bank's balance sheet, detailing assets such as cash, reserves, loans made to customers, and bonds, is a practical example of a T-account.
This presentation allows for a clear view of the financial position by showing how assets are financed either through liabilities or through the stockholders' equity, which represents the net worth or bank capital in the context of a bank balance sheet.