Which financial statement provides a list of a company's assets and liabilities at a specific point in time?

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

Answer: (C)

Verified step by step guidance

1. Understand the purpose of each financial statement: The Statement of Cash Flows shows cash inflows and outflows over a period, the Statement of Retained Earnings explains changes in retained earnings, the Income Statement reports revenues and expenses over a period, and the Balance Sheet provides a snapshot of assets, liabilities, and equity at a specific point in time.
2. Focus on the key requirement of the question: It asks for the financial statement that lists assets and liabilities at a specific point in time.
3. Recall the definition of the Balance Sheet: It is a financial statement that shows the company's financial position by listing assets, liabilities, and equity as of a specific date.
4. Compare the Balance Sheet to the other options: The Statement of Cash Flows, Statement of Retained Earnings, and Income Statement do not provide a snapshot of assets and liabilities at a specific point in time.
5. Conclude that the correct answer is the Balance Sheet, as it meets the criteria of listing assets and liabilities at a specific point in time.