What financial statement provides a snapshot of a company’s assets, liabilities, and equity?

The financial statement that provides a snapshot of a company's assets, liabilities, and equity at a specific point in time is the balance sheet. This statement is structured to present the financial position of a business by summarizing what the company owns (assets), what it owes (liabilities), and the residual interest of the owners (equity).

The balance sheet follows the fundamental accounting equation: Assets = Liabilities + Equity. This equation matures into the format of the balance sheet, resulting in key insights regarding the financial stability and capital structure of a company. Investors, creditors, and management utilize this information to assess risk, leverage, and overall financial health.

In contrast, the income statement summarizes revenues and expenses over a period of time, measuring the company's profitability. The cash flow statement reports the inflows and outflows of cash, providing information about the company’s liquidity. The statement of retained earnings details the changes in retained earnings over a specific period, showing how much profit is reinvested in the business rather than distributed as dividends. Each of these statements serves unique purposes but does not provide the same holistic view of assets, liabilities, and equity as the balance sheet does.