Which financial statement shows the balances of accounts as of a specific date?

• A. Income Statement
• B. Cash Flow Statement
• C. Balance Sheet
• D. Profit and Loss Statement

Answer: (C)

The balance sheet is the financial statement that presents the balances of accounts at a specific point in time. It provides a snapshot of a company's financial position, detailing its assets, liabilities, and equity as of the date stated. This information is crucial for stakeholders to assess the company's financial health and stability.

In contrast, other financial statements serve different purposes. The income statement focuses on revenues and expenses over a period, showing how much profit or loss the company generated during that time. The cash flow statement outlines the cash inflows and outflows, providing insight into the company’s liquidity over a period. The profit and loss statement, similar to the income statement, highlights income and expenses to illustrate performance over a designated timeframe. Thus, the unique characteristic of the balance sheet being a point-in-time snapshot makes it the correct answer to the question.