Which financial statement shows assets, liabilities, and shareholders' equity at a point in time?

• A. Income statement
• B. Cash flow statement
• C. Statement of retained earnings
• D. Balance sheet

Answer: (D)

A balance sheet provides a snapshot of a company’s financial position at a specific date, listing assets, liabilities, and shareholders’ equity. It rests on the accounting equation: assets = liabilities + shareholders’ equity, showing exactly what the company owns and owes, plus the owners’ claim, all at one moment in time. The other statements describe financial activity over a period: the income statement covers profitability over a span, the cash flow statement shows cash movements during a period, and the retained earnings (part of the equity statements) tracks changes in retained earnings across a period. So the balance sheet is the one that presents assets, liabilities, and shareholders’ equity together at a single point in time.