Final answer:
The balance sheet provides a snapshot of a firm's financial position at a specific point in time and is falsely described by the statement as summarizing over a period. It uses a T-account format to list assets, liabilities, and net worth.
Step-by-step explanation:
The statement that 'The balance sheet summarizes a firm's financial position over a period of time, for instance 3 months or a year' is false. A balance sheet actually provides a snapshot of a firm's financial position at a specific point in time, not over a period. It lists the firm's assets, liabilities, and net worth, with these elements depicted in a two-column T-account format. The left side of the T-account shows assets, which are valuables owned by the company, while the right side lists liabilities, which represent debts owed by the company. The difference between the two is known as net worth or equity. For a bank, assets include cash in vaults, reserves held at the Federal Reserve, loans made to customers, and any bonds held. Liabilities consist of customer deposits and other debts of the bank. The net worth is also referred to as bank capital, which on a healthy balance sheet, should be positive.