Final answer:
A balance sheet is the financial statement that shows what a business owns and owes on a specific date, detailing assets, liabilities, and net worth.
Step-by-step explanation:
The financial statement which presents a picture on a particular date of what a business owns and owes is a balance sheet. It is an accounting tool that lists assets and liabilities. An asset is something of value that is owned and can be used to produce something, such as cash or a home. A liability is a debt or something you owe, like a mortgage on a house. The net worth, or equity, is calculated by subtracting total liabilities from total assets. A bank's balance sheet includes assets such as cash held in its vaults and loans made to customers, and liabilities such as deposits from customers. As in any balance sheet, a bank's assets must always equal the sum of its liabilities and net worth.