Which financial statement provides a snapshot of an organization's assets and liabilities?

The balance sheet is the financial statement that provides a snapshot of an organization's assets and liabilities at a specific point in time. It offers a clear picture of what the organization owns (assets) and what it owes (liabilities), allowing stakeholders to assess its financial position and stability. The balance sheet is divided into two main sections: the left side lists the organization's assets, while the right side lists its liabilities and owners' equity. This format highlights the accounting equation, which states that assets equal liabilities plus shareholders' equity, demonstrating the relationship between these components.

In contrast, the income statement summarizes revenues and expenses over a period, reflecting the organization’s operational performance but not its financial position at a single moment. The cash flow statement tracks the flow of cash in and out of the organization, providing insight into liquidity and cash management but not a detailed picture of assets and liabilities. The statement of changes in equity shows how equity has changed over a period, focusing on factors affecting ownership but not directly illustrating the balances of assets and liabilities. Thus, the balance sheet is uniquely positioned to provide the essential overview that describes an organization's financial standing at a given time.