Final answer:
The obligation and debt of a business are known as liabilities, which include debts like loans and mortgages. These are accounted for on a balance sheet or a T-account, where they are subtracted from assets to calculate net worth.
Step-by-step explanation:
The obligation and debt of a business, when it owes money, are referred to as liabilities. In the context of a bank's balance sheet, liabilities are what the bank owes to others, such as deposits made by customers. The assets, on the other hand, are valuable items the bank owns, like cash in vaults and loans made to customers, which can be used to produce income. Net worth on a balance sheet is calculated by subtracting the total liabilities from the total assets, which reflects the bank's capital. The 'T' in a T-account visualizes this relationship, with assets on the left and liabilities on the right, ensuring that assets always equal liabilities plus net worth.