Which financial statement is used to show a company's financial position at a specific point in time?

The statement of financial position, commonly referred to as the balance sheet, is designed specifically to present a company's financial position at a particular moment in time. It provides a snapshot that lists the company's assets, liabilities, and equity as of that specific date. This allows stakeholders to assess the company’s liquidity, financial stability, and capital structure at that exact point.

In contrast, the statement of profit or loss and the income statement serve to illustrate the company's financial performance over a period, detailing revenues and expenses to show profit or loss. The statement of cash flows focuses on the inflows and outflows of cash over a period, providing insights into the company’s liquidity and cash management rather than its financial position at a single point in time. Thus, while all these statements are essential for understanding different aspects of a company's finances, the statement of financial position is the one that captures and reports the financial status of the company at a specific moment.