Final answer:
The reliability principle, which advocates for recording assets and services at their actual cost, is true. In accounting, T-accounts track assets and liabilities, with assets always equalling the sum of liabilities and net worth. The correct statement is true.
Step-by-step explanation:
The statement that the reliability principle states assets and services should be recorded at their actual cost is true.
This principle, also known as the historical cost principle, holds that it is more reliable to record the acquisition of assets and services based on the actual amounts paid, rather than on subjective measures such as perceived current market value.
In accounting, T-accounts serve as a visual representation to track the changes in each account for an entity. For a bank's T-account, the left side lists assets, which include reserves and instruments such as loans made by the bank and government securities.
On the right side are the bank's liabilities, which consist of what the bank owes, like deposits made by individuals or entities. The net worth, found by subtracting total liabilities from total assets, appears on the liabilities side as well in order to make the T-account balance. The correct statement is true.