Final answer:
An account is a summary of changes in assets, liabilities, stockholders' equity, revenues, and expenses. The balance sheet represents this summary in detail through a T-account format, differentiating a business's assets from its liabilities and showcasing its net worth or equity.
Step-by-step explanation:
A summary of changes in assets, liabilities, stockholders' equity, revenues, and expenses is known as a(n) account. When discussing a bank's balance sheet or that of any business, it's crucial to understand that the balance sheet is essentially a more detailed type of account that lists those items. It shows the financial position of an entity at a specific point in time and is fundamental to the field of accounting.
The balance sheet features a two-column T-account format. This separates the assets of a firm, which are owned and can be used to produce something, from its liabilities, which are debts or obligations owed by the firm. The difference between these two sides is the net worth or equity, which is referred to as the owner's or stockholders' equity in a corporate context. A bank's assets might include cash in vaults, reserves at the Federal Reserve, loans made to customers, and securities such as U.S. Treasury bonds.
Answer: 2. Account