Final answer:
Corporations need to maintain records of assets and liabilities for financial reporting, tax purposes, and to fulfill state requirements. These records help in preparing the balance sheet which reflects a company's financial status.
Step-by-step explanation:
It is vital for a corporation to keep records of assets and liabilities to meet certain state requirements. These records are essential for financial reporting, tax purposes, and maintaining corporate transparency. Corporations must accurately track their financial position, which includes understanding what they own (assets) and what they owe (liabilities). Records of assets and liabilities help in creating the balance sheet, which is a crucial financial statement used by investors, creditors, and regulators to assess the financial health of the company.