Final answer:
On a balance sheet, the resources owned by a company such as cash, accounts receivable, and vehicles are reported as assets. The net worth of a company is calculated by subtracting the total liabilities from the total assets.
Step-by-step explanation:
On a balance sheet, the resources owned by a company such as cash, accounts receivable, and vehicles are reported as assets. Assets are items of value that a company owns and can be used to produce something. These assets are listed on the left side of a T-account, which separates the assets from the liabilities. The net worth of a company, also known as its bank capital, is calculated by subtracting the total liabilities from the total assets. In a healthy business, the net worth will be positive.