Final answer:
A financial report that lists assets, liabilities, and net worth is called a balance sheet. It provides a snapshot of an individual's or business's financial status at a specific point in time, and for banks, it includes bank capital, cash reserves, and loans made to customers.
Step-by-step explanation:
A financial report listing your assets, liabilities, and net worth is called a balance sheet. This accounting tool is used by individuals and businesses alike to provide a snapshot of financial health at a given point in time. Assets are valuable items owned by a person or entity, such as cash or real estate. Conversely, liabilities represent debts or obligations, such as loans or mortgages. The difference between total assets and total liabilities is referred to as net worth or equity.
For banks, the balance sheet is particularly important as it also lists bank capital, cash held in vaults, reserves at the Federal Reserve, and loans made to customers. The "T" in a T-account is a simplified representation that separates assets on the left from liabilities on the right, with net worth included on the liabilities side to balance the equation. Hence, a bank's assets always equal its liabilities plus net worth.
Three options are provided as possible answers for the financial report in question: 1) statement of owner's equity, 2) statement of net worth, 3) a balance sheet. The correct answer is option 3) a balance sheet. The statement of owner's equity primarily focuses on changes in equity over time, while the statement of net worth is a less formal term that may refer to the equity section of a balance sheet, specifically for individuals rather than businesses.