Final answer:
The question deals with ledger accounts and the impact of a new business plan on a bank's balance sheet, which includes changes in reserves and loans while maintaining the same level of deposits.
Step-by-step explanation:
The question refers to ledger accounts and highlights a change in business plan affecting a bank's balance sheet. A balance sheet is a financial statement that displays a company's assets, liabilities, and bank capital at a specific point in time. It often has a two-column T-account format, with assets on one side and liabilities on the other. In the given examples, Singleton Bank's assets are changing due to a new business plan, which is evidenced by its new reserves and the loan to Hank's Auto Supply. Despite these changes, the bank's liabilities, represented by deposits, remain the same.
Business students typically analyze balance sheets to understand the financial health and stability of a corporation. Key elements of the balance sheet such as reserves, loans, and deposits are critical in bank regulation and inform stakeholders about the risk profile and liquidity of the financial institution.