What financial statement gives a snapshot of a company's assets, liabilities, and equity?

The balance sheet provides a snapshot of a company's financial position at a specific point in time, summarizing its assets, liabilities, and equity. Assets represent what the company owns, such as cash, inventory, and property. Liabilities reflect what the company owes to others, including loans and accounts payable. Equity represents the residual interest in the company's assets after deducting liabilities, indicating the ownership stake of shareholders.

This financial statement is crucial for assessing a company's liquidity, solvency, and financial structure. By analyzing the balance sheet, stakeholders can evaluate whether the company's resources are sufficient to meet its obligations and how effectively the assets are being utilized to generate profits. In contrast, other financial statements like the income statement focus on a company's revenues and expenses over a period, the cash flow statement details inflows and outflows of cash, and the statement of retained earnings shows changes in equity, particularly involving dividends and retained profits.