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

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

Answer: (C)

Showing the company’s financial position at a specific point in time is what the balance sheet does. It lists what the business owns (assets) and what it owes (liabilities) plus the owners’ stake (equity) as of a particular date, providing a snapshot of the financial position. This contrasts with the income statement, which covers performance over a period; the cash flow statement, which tracks cash movements over a period; and the statement of changes in equity, which shows changes in equity over a period.