What document reflects the financial situation of a company at a specific time?

The balance sheet is the document that provides a snapshot of a company's financial situation at a specific point in time. It outlines the company’s assets, liabilities, and equity, allowing stakeholders to understand what the company owns and owes at that moment. The balance sheet follows the accounting equation: Assets = Liabilities + Equity, ensuring that the financial position is balanced.

In contrast, the income statement summarizes revenues and expenses over a period of time, providing insight into a company's operational performance rather than its financial position at a single point in time. The cash flow statement tracks the flow of cash in and out of the business over a specific period, focusing on liquidity and cash management rather than a static view of financial status. The statement of shareholders' equity details changes in equity accounts over a period, such as contributions and distributions, but does not encapsulate the overall net worth of the company at a specific date like the balance sheet does.