In financial accounting, a balance sheet lists which of the following?

• A. Assets, liabilities, and shareholders’ equity as of a specific date
• B. Revenues and expenses for a specific period of time
• C. Cash receipts and cash payments for a specific period of time
• D. Changes in shareholders’ equity for a specific period of time

Answer: (A)

Verified step by step guidance

1. Understand the purpose of a balance sheet: it provides a snapshot of a company's financial position at a specific point in time.
2. Recall the three main components of a balance sheet: assets, liabilities, and shareholders' equity.
3. Recognize that assets represent what the company owns, liabilities represent what the company owes, and shareholders' equity represents the owners' residual interest.
4. Note that the balance sheet differs from other financial statements like the income statement (which shows revenues and expenses over a period) and the cash flow statement (which shows cash inflows and outflows over a period).
5. Conclude that the balance sheet lists assets, liabilities, and shareholders' equity as of a specific date, not over a period of time.