Which financial statement reports assets, liabilities, and owner's equity as of a specific date?

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

Answer: (B)

Verified step by step guidance

1. Understand the purpose of each financial statement: The Balance Sheet reports assets, liabilities, and owner's equity as of a specific date, providing a snapshot of the company's financial position. The Statement of Cash Flows shows cash inflows and outflows over a period, the Income Statement reports revenues and expenses over a period, and the Statement of Retained Earnings explains changes in retained earnings over a period.
2. Identify the key elements mentioned in the question: Assets, liabilities, and owner's equity are components of the Balance Sheet. These elements represent the company's resources, obligations, and ownership interest.
3. Recognize the time frame: The Balance Sheet is unique because it reports financial information as of a specific date, unlike other statements that cover a period of time.
4. Match the description to the correct financial statement: Based on the elements and time frame provided, the Balance Sheet is the financial statement that fits the description.
5. Conclude that the Balance Sheet is the correct answer, as it reports assets, liabilities, and owner's equity as of a specific date, fulfilling the criteria outlined in the question.