Final answer:
A detailed record of changes in an individual's asset, liability, or equity is called a ledger. The balance sheet shows a company's financial position, with a T-account format reflecting assets on one side and liabilities plus net worth on the other.
Step-by-step explanation:
A detailed record of all increases and decreases that have occurred in an individual asset, liability, or equity during a specified period is called a ledger. The balance sheet is an accounting tool that leverages the concept of a ledger, summarizing a company's financial position, including assets, liabilities, and net worth at a specific point in time. Notably, the structure of a balance sheet reflects that total assets must always equal the sum of liabilities plus net worth.
A typical representation of this in accounting is via a T-account, which organizes assets on the left and liabilities on the right. For banks, their balance sheet would include assets like cash, loans made to customers, and U.S. Government Securities, whereas liabilities would encapsulate customer deposits and borrowing. Net worth, also known as bank capital, is the difference between total assets and liabilities.