Final answer:
The correct term for the balance sheet is 'Statement of Financial Position,' an accounting tool listing a company's assets, liabilities, and net worth at a specific point in time.
Step-by-step explanation:
The balance sheet could also be called the Statement of Financial Position. The balance sheet is an essential accounting tool that displays a company's assets, liabilities, and net worth at a specific point in time. Assets are valuable items owned by the company that can be used to produce more wealth, while liabilities refer to the debts or obligations the company owes. The difference between the total assets and total liabilities is known as the net worth or bank capital in the context of a bank's balance sheet. A bank's assets include cash in vaults, reserves held at the central bank, loans made to customers, and bonds owned, whereas a bank's liabilities primarily consist of customer deposits.