Which financial statement provides a snapshot of a company's assets, liabilities, and shareholder equity at a specific point in time?

The balance sheet provides a snapshot of a company's financial position at a specific point in time by detailing its assets, liabilities, and shareholder equity. It follows the accounting equation, which states that assets equal liabilities plus equity. This statement is crucial for understanding the financial stability of a company because it clearly conveys how much the company owns (assets), what it owes (liabilities), and the leftover interest of the owners (equity) at a given moment.

In contrast, the income statement focuses on a company's revenues and expenses over a period, showcasing its profitability rather than its financial position at a specific point. The statement of retained earnings summarizes changes in retained earnings over a period but does not provide a complete view of a company's financial position. Lastly, the statement of cash flows outlines cash inflows and outflows over a certain period, emphasizing liquidity rather than the overall financial structure as seen on the balance sheet. Thus, the balance sheet is the document that offers the comprehensive snapshot necessary for evaluating a company’s financial standing at a specific date.