Which financial statement reflects an entity’s financial position at a specific point in time?

The balance sheet is the financial statement that reflects an entity’s financial position at a specific point in time. It provides a snapshot of the company's assets, liabilities, and equity at a given date, allowing stakeholders to assess what the company owns and owes. This is crucial for evaluating the liquidity and financial stability of the organization.

In contrast, the income statement provides information about the company's revenues and expenses over a period, ultimately showing how much profit or loss was generated. The statement of cash flows focuses on the flow of cash in and out of the business over a particular period, detailing how cash is generated and used. Meanwhile, the statement of changes in equity presents the movements in equity accounts over time, reflecting changes due to transactions such as issuance of shares or dividends. None of these statements provide that specific point-in-time financial position that the balance sheet does.