What financial statement reflects a business's assets and liabilities at a specific point in time?

The Balance Sheet is the financial statement that reflects a business's assets and liabilities at a specific point in time. It provides a snapshot of what the business owns (assets) and what it owes (liabilities), allowing stakeholders to assess the company's financial position at that exact moment. This statement adheres to the accounting equation: Assets = Liabilities + Equity, which demonstrates how assets are financed either through debt or through the owner’s equity.

Understanding the significance of a Balance Sheet is crucial for evaluating a company's liquidity and financial health, as it helps in determining whether the business can meet its short-term and long-term obligations.

In contrast, the Income Statement primarily provides information about a company’s revenues and expenses over a period of time, showcasing profitability rather than financial position at a specific moment. The Cash Flow Statement details the inflows and outflows of cash, indicating how well a company manages its cash to fund its obligations and operations. The Equity Statement outlines changes in the owner’s equity over a period but does not detail the overall assets and liabilities. This distinction reinforces why the Balance Sheet is specifically aligned with assessing a business's assets and liabilities at a given point in time.