Final answer:
The assertion that intangible assets must appear on the balance sheet at market values is false, as they are typically reported at historical cost and adjusted for amortization and impairment, not market value changes.
Step-by-step explanation:
Intangible assets should not be presented in the balance sheet at their respective market values. This statement is false. According to accounting standards, intangible assets are usually recognized at their historical cost and are then subject to amortization and impairment tests, rather than being adjusted to market value. Additionally, determining the market value of intangible assets can be difficult and subjective, as they do not have a physical presence and their value is based on estimates of future benefits.
In a bank's balance sheet, assets such as loans and securities are listed, but do not physically reside in the bank as cash; rather they are financial claims or investments. The asset side shows what the bank owns and is owed, while the liability side shows what the bank owes to others, including deposits from customers. The concept of a T-account is used to illustrate the relationship between a bank's assets, liabilities, and net worth (bank capital), making sure they balance out.