What financial statement displays the balances of a company's assets, equity, and liabilities?

The Balance Sheet is the financial statement that provides a snapshot of a company’s financial condition at a specific point in time. It presents the balances of the company's assets, liabilities, and equity. The formula that underpins the Balance Sheet—Assets = Liabilities + Equity—highlights the relationship between these components.

Assets represent what the company owns, liabilities signify what it owes, and equity indicates the residual interest of the owners in the business after liabilities have been deducted from assets. This structure is essential for understanding the financial health of the company and is a critical tool for both internal management and external stakeholders, such as investors and creditors, who rely on this information for decision-making.

While the other financial statements mentioned serve important purposes, they focus on different aspects of the company's finances. The Cash Flow Statement tracks the cash inflows and outflows over a period, providing insights into liquidity. The Income Statement summarizes revenues and expenses to show profitability over a period. The Statement of Changes in Equity details changes in equity accounts but does not summarize the overall financial position like the Balance Sheet does.