By the way, here is the actual way a house is wired.
In the U.S., most homes are fed from what is called a split phase transformer. This is a transformer connected to a single phase of the distribution line, with a center tap on the transformer coil (hence, split phase). This gives you three connections to the transformer. The wire connected to the center tap is called the neutral. The lines connected to each end of the transformer coil are called the lines (or the “hot” wires). All three wires come into your breaker box. You have 240 volts between the two hot lines, and since the center tap is exactly halfway between these, you get 120 volts between the center tap and either hot line.
Fairly rare in the U.S. (for residential service) but still in use in some areas, you get two out of three phases of a three phase system. I won’t go into details of a three phase system here, but you end up with 120 volts from either line to neutral, but only 208 volts from line to line. Many large business and industrial facilities use three phase. There are some residential areas still using it, but not many.
The neutral is connected to earth ground, fairly close to the breaker box. In older homes, the ground was required to be through the cold water pipe, since this was a common piece of metal that pretty much every home had. When folks started using PVC pipe, the requirements changed. Newer homes are required to use a grounding rod (literally, a rod of copper driven into the ground) for the earth ground connection. However, you don’t want your water pipes to be floating, electrically, because then if a hot wire shorts to a water pipe then your entire water system becomes an electrical hazard. So, water pipes are required to be connected to the earth ground connection as well. So even in a newer home, you still end up with the water pipe connection to earth ground, just for a different reason.
In your breaker box, the connections alternate between the two hot lines. A 120 volt circuit breaker connects to only one of the two hot lines, and those are generally split so that about half of them will be attached to line one and the other half will be attached to line two. 240 volt circuit breakers connect to both lines.
The hot wires run out to all of the circuits, and the neutrals are all connected together inside the breaker box. All of the protective grounds will also be connected together, and are required to be connected to the neutral, which is also connected to the actual earth ground connection, and all of these connections must be close to the breaker box.