Which financial statement shows a company's financial position at a specific point in time?

• A. Income statement
• B. Balance sheet
• C. Cash flow statement
• D. Statement of changes in owners' equity

Answer: (B)

The balance sheet provides a snapshot of a company's financial position on a specific date by listing assets, liabilities, and owners' equity. It shows what the company owns, what it owes, and the residual claim of the owners at that moment, giving a clear picture of solvency and capital structure as of that date. The other statements describe how the business performed or changed over time: the income statement summarizes revenues and expenses to show profit or loss for a period; the cash flow statement tracks cash movements during the period; and the statement of changes in owners' equity shows how equity components evolved over the period. Therefore, for a point-in-time view of financial position, the balance sheet is the correct one.