Final answer:
The report that lists all accounts and their balances to ensure debits equal liabilities is called a trial balance. It's essential for accurate accounting and leads to the preparation of financial statements. Banks use T-accounts to display assets and liabilities, with net worth balancing the equation.
Step-by-step explanation:
The internal report that lists all of the accounts and their balances and is used to determine that the total debits equal the total liabilities is called a trial balance. This report is critical in the accounting process as it ensures that the entries in a company's accounting system are mathematically correct. A trial balance is prepared periodically, usually at the end of an accounting period, and it serves as the basis for preparing a company's financial statements.
Banks, like other businesses, use a form of a balance sheet detailed in a T-account format where assets are on the left side and liabilities on the right side. For banks, assets include reserves, loans made to customers, and securities like U.S. treasury bonds, while liabilities include deposits from customers and any other debts. The net worth of the bank, or bank capital, is calculated as total assets minus total liabilities, and is included on the liabilities side to ensure the T-account balances to zero.