Which document lists assets, liabilities and equity at a given date?

Which document lists assets, liabilities and equity at a given date?

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

Answer: (C)

A balance sheet provides a snapshot of a company’s financial position at a specific date, listing assets, liabilities, and equity. It centers on the accounting equation: Assets = Liabilities + Equity. This shows what the business owns, what it owes, and the owners’ stake right now, helping you judge liquidity and solvency at that moment. The other statements serve different purposes: the income statement records revenues and expenses over a period to show profit or loss; the cash flow statement tracks cash inflows and outflows over a period; the statement of changes in equity details how equity components change during a period. Since the question specifies a date, the balance sheet is the document that fits.

A balance sheet provides a snapshot of a company’s financial position at a specific date, listing assets, liabilities, and equity. It centers on the accounting equation: Assets = Liabilities + Equity. This shows what the business owns, what it owes, and the owners’ stake right now, helping you judge liquidity and solvency at that moment.

The other statements serve different purposes: the income statement records revenues and expenses over a period to show profit or loss; the cash flow statement tracks cash inflows and outflows over a period; the statement of changes in equity details how equity components change during a period. Since the question specifies a date, the balance sheet is the document that fits.