Question

Which financial statement shows a company’s financial position at a specific date?

• A. Income Statement
• B. Balance Sheet
• C. Cash Flow Statement
• D. Retained Earnings Statement

Hint:

Balance Sheet = Snapshot on a date. Income Statement = Performance over time.

Answer 1

The Correct Option is B

The Balance Sheet shows assets, liabilities, and shareholders' equity at a specific date. It follows the formula: Assets = Liabilities + Equity. It gives a snapshot of what the business owns and owes. Income Statement shows profit over a period; Cash Flow Statement tracks cash movement.

Answer 2

Time-Frame Test: Ask of each statement: does it describe ONE moment or a PERIOD of activity?

The Balance Sheet is the only one that answers 'as of [date]' — it lists Assets, Liabilities, and Equity at a single instant (Assets = Liabilities + Equity).

Income Statement, Cash Flow Statement, and Retained Earnings Statement all summarize what happened OVER a period (a quarter or year), so none of them is a single-date snapshot.