What is a financial statement that shows the status of assets, liabilities, and owner's equity at a specific time?

The balance sheet is a crucial financial statement that provides a snapshot of an organization's financial position at a specific point in time. It details the company's assets, liabilities, and owner's equity, allowing stakeholders to assess the company's financial health and stability.

Assets represent what the company owns, including cash, inventory, property, and equipment. Liabilities indicate what the company owes to external parties, such as loans, accounts payable, and other debts. Owner's equity reflects the residual interest in the assets after subtracting liabilities, essentially representing the owners' claim on the business assets.

This structured format helps in analyzing the liquidity, operational efficiency, and financial leverage of the organization, making it an essential tool for management, investors, and creditors in their decision-making processes.