Final answer:
Permanent accounts are accounts on the balance sheet that are carried forward indefinitely, including Cash, Accounts Receivable, Equipment, and others. A bank's balance sheet lists assets and liabilities, with net worth representing the balance between them, and is structured in the form of a T-account where assets equate to liabilities plus net worth.
Step-by-step explanation:
The accounts reported on the balance sheet that are carried forward from period to period are known as permanent accounts. These include accounts such as Cash, Accounts Receivable, Equipment, Accumulated Depreciation, Accounts Payable, and Owner's capital. Permanent accounts are contrasted with temporary accounts, which are zeroed out at the end of the fiscal year and their balances are transferred to permanent accounts to reflect the changes in the net worth of the company.
A bank's balance sheet functions similarly, where the assets (e.g., cash held in vaults, loans made by the bank, U.S. Treasury bonds) are on one side, and liabilities (e.g., deposits made in the bank) along with net worth (bank capital) are on the other side. The balance sheet reflects the bank's financial position at a specific point in time, with the 'T' in a T-account separating assets from liabilities plus net worth, ensuring that assets always equal liabilities plus net worth.