Final answer:
The question addresses the use of T-accounts in accounting for a bank's assets and liabilities and the calculation of net worth. Assets include reserves and loans, while liabilities consist of customer deposits. A T-account ensures that a firm's total assets always equal its liabilities plus net worth. The correct option is C) The year-end balances of liability accounts are not provided.
Step-by-step explanation:
The question refers to the T-account that separates a firm's assets from its liabilities. For a bank, assets include financial instruments such as reserves, loans made by the bank, and U.S. Government Securities.
Liabilities represent what the bank owes to others, such as deposits made by its customers. The net worth (or bank capital) is calculated as total assets minus total liabilities and is included on the liabilities side of the T-account to ensure the account balances.
For any bank or business, the balance sheet will always show that assets equal liabilities plus net worth. This concept is a fundamental aspect of accounting and ensures the financial statements are balanced. A healthy business typically has a positive net worth, while a bankrupt firm will have a negative net worth. The correct option is C) The year-end balances of liability accounts are not provided.