Final answer:
A general ledger is the record that includes all control accounts of an institution, used to compile financial statements like the balance sheet, where total assets always equal liabilities plus net worth. Option a
Step-by-step explanation:
The record that comprises all control accounts of an institution, which includes both customer and internal accounts used by the institution to facilitate its operations, is known as a general ledger. This general ledger is a complete record of all financial transactions over the life of an organization.
It serves as the principal accounting record of the company and is used to create a company's financial statements, such as the balance sheet and income statement. On a balance sheet, formed in a T-account format, assets are listed on the left-hand side, and liabilities are on the right-hand side, with the understanding that total assets will always equal liabilities plus net worth.
In accounting terms, the general ledger also uses the T-account structure where debits are posted on the left side and credits on the right side.
Banks, like any businesses, utilize the general ledger to compile their financial statements. A bank's assets may include reserves or loans made, and the liabilities will include deposits made by customers. The net worth of a bank is the assets minus the liabilities, and it is listed on the liabilities side to ensure the balance sheet is balanced. Option a