A balance sheet shows:

A balance sheet shows:

• A. assets and liabilities at a certain point in time
• B. revenues and expenses for the year
• C. cash flows over the period
• D. equity performance over time

Answer: (C)

A balance sheet shows the company’s financial position at a specific moment in time. It lists what the business owns (assets), what it owes (liabilities), and the owners’ stake (equity) as of that date. That’s why describing assets and liabilities at a particular moment is the correct match. Revenues and expenses for the year appear on the income statement, not the balance sheet. Cash flows over a period are shown on the statement of cash flows. Equity “performance” over time isn’t depicted on the balance sheet; it’s shown as the change in equity on the balance sheet date, not as a time-based performance line.

A balance sheet shows the company’s financial position at a specific moment in time. It lists what the business owns (assets), what it owes (liabilities), and the owners’ stake (equity) as of that date. That’s why describing assets and liabilities at a particular moment is the correct match. Revenues and expenses for the year appear on the income statement, not the balance sheet. Cash flows over a period are shown on the statement of cash flows. Equity “performance” over time isn’t depicted on the balance sheet; it’s shown as the change in equity on the balance sheet date, not as a time-based performance line.