Final answer:
A balance sheet's purpose is to show the financial position of an entity at a specific point in time, accounting for assets, liabilities, and net worth or bank capital.
Step-by-step explanation:
The financial statement that lists an entity's total assets and total capital/liabilities is known as a balance sheet. Its purpose is to show the financial position of the entity at a particular moment in time.
Assets are items of value owned by the entity, such as cash and real estate, while liabilities are debts that the entity owes, such as mortgages. The difference between assets and liabilities is known as net worth, or in the case of a bank, as bank capital.
A balance sheet works to confirm that assets always equal liabilities plus net worth, demonstrating the entity's financial stability or health at a specific point.
Step-by-step explanation:
The purpose of the financial statement that lists an entity's total assets and total capital/liabilities is to show the financial position of the entity at a particular moment in time.
This statement is known as the balance sheet and it provides a snapshot of the entity's assets, liabilities, and owner's equity at a specific point in time, usually at the end of a reporting period, such as a month, quarter, or year.