A business financial statement that shows assets, liabilities, and the net worth of a business for a specific date is called a?

• A. Balance sheet
• B. Cash flow statement
• C. Production schedule
• D. Investment portfolio

Answer: (A)

A balance sheet provides a snapshot of a business’s financial position on a specific date. It lists what the business owns (assets), what it owes (liabilities), and the owner’s stake in the business (net worth or equity). The net worth is found by subtracting liabilities from assets, and the balance sheet presents this relationship all at once. This differs from a cash flow statement, which tracks cash movements over a period; a production schedule, which outlines production timing; and an investment portfolio, which is a collection of investments. So for showing assets, liabilities, and net worth on a single date, the balance sheet is the correct term.