What type of financial statement reports assets, liabilities, and owner's equity on a specific date?

The balance sheet is the financial statement that provides a snapshot of an entity's financial position at a specific point in time, detailing assets, liabilities, and owner's equity. This statement is divided into two main sections: the left side, which lists assets, and the right side, which shows liabilities and owner's equity. The fundamental accounting equation, which states that assets equal liabilities plus owner's equity, is the basis for this structure.

The balance sheet is crucial for stakeholders, including management, investors, and creditors, as it summarizes what the company owns and owes, and ultimately what the owner's stake in the business is. This information is essential for assessing the financial health and stability of the organization.

Other financial statements serve different purposes: the income statement summarizes revenues and expenses over a period, showing profitability; the cash flow statement reports cash inflows and outflows, providing insights into liquidity; and the statement of retained earnings focuses specifically on changes in retained earnings over time. Each serves a distinct role in financial reporting but does not provide a comprehensive view of the financial position at a single date like the balance sheet does.