Which financial statement shows assets, liabilities, and owners' equity at a specific date?

• A. Income Statement
• B. Statement of Changes in Equity
• C. Statement of Cash Flows
• D. Balance Sheet

Answer: (D)

Think of a financial report as a snapshot of where a company stands at a single moment. The balance sheet lists what the company owns (assets), what it owes (liabilities), and the owners’ claim on the business (owners’ equity) all at that specific date. It follows the fundamental equation: assets equal liabilities plus owners’ equity. This makes it ideal for showing the exact financial position on a chosen date, unlike other statements that cover a period. The income statement, for example, reports performance over a span of time—revenues and expenses leading to net income or loss. The statement of cash flows tracks cash movements across a period. The statement of changes in equity shows how owners’ equity changes during the period due to investments, withdrawals, and earnings. So, for showing assets, liabilities, and owners’ equity at a specific date, the balance sheet is the one to use.