Which financial statement reports the status of assets, liabilities, and owners' equity as of a specific date?

• A. Income Statement
• B. Balance Sheet
• C. Source Document
• D. Alternative Container

Answer: (B)

The balance sheet is the financial statement that shows what a company owns and owes at a specific point in time, listing assets, liabilities, and owners’ equity in a snapshot that must balance (Assets = Liabilities + Owners’ Equity). This point-in-time view distinguishes it from other statements.

The income statement, in contrast, presents performance over a period—revenue and expenses to show net income—rather than a single date. A source document is just the record that evidence of a transaction, not a financial statement. An “Alternative Container” isn’t a standard financial statement. So the balance sheet best fits the question by portraying the financial position as of a specific date.