What is typically included in a 'balance sheet'?

A 'balance sheet' is a fundamental financial statement that presents an organization's financial condition at a specific point in time. It summarizes the company’s assets, liabilities, and equity, providing crucial insights into its financial health.

The correct answer intuitively aligns with the definition of a balance sheet as it is often referred to as a statement of financial condition. This terminology emphasizes the balance sheet's purpose: to provide a snapshot of what the organization owns and owes. It gives stakeholders an understanding of the resources available to the company, the obligations it must fulfill, and the net worth (equity) that remains after liabilities are accounted for.

In contrast, a statement of cash flows focuses on cash movement over a period, capturing inflows and outflows rather than a static view of financial position. A summary of revenues and expenses is typically associated with an income statement, which reports earnings over a specific timeframe rather than at a moment in time. Lastly, while an inventory valuation report may be one component of a balance sheet, it does not encompass the entirety or primary purpose of the balance sheet itself.