Final answer:
A financial report listing a patient's assets and liabilities is called a balance sheet. It includes items of value owned (assets) and financial obligations owed (liabilities), with the difference between the two being net worth or bank capital for financial institutions.
Step-by-step explanation:
The financial report that lists a patient's assets and liabilities is called a balance sheet. A balance sheet is an essential accounting tool utilized by individuals and businesses, including banks, to showcase financial health. An asset implies anything of value that is owned, such as cash or real estate. A liability, on the other hand, represents a debt or obligation owed to others, such as loans or mortgages. The difference between total assets and total liabilities is known as net worth for individuals or bank capital for financial institutions.
- Assets: Items of value owned by the individual or bank, including cash, investments, and real estate.
- Liabilities: Financial obligations owed, such as loans, mortgages, and other debts.
- Net Worth/Capital: The value of assets minus liabilities, indicating the financial health or stability.
Banks list various assets on their balance sheets, such as cash in vaults, reserves held at the Federal Reserve bank, loans made to customers, and bonds. Not all assets listed under a bank's balance sheet, like loans, are held in liquid form within the bank itself, as they are often invested or lent out.