Which of the following financial statements provides a snapshot of an entity's financial position at a specific point in time?

The balance sheet provides a snapshot of an entity's financial position at a specific point in time because it summarizes the company's assets, liabilities, and shareholders' equity as of that date. This financial statement is structured to give stakeholders a clear view of what the company owns (assets) and what it owes (liabilities), allowing them to evaluate the net worth of the business. The balance sheet is unique in its focus on a single moment, indicating the financial stability and capital structure of the organization.

In contrast, the income statement reflects the company's performance over a period of time, detailing revenues and expenses to show profitability. The cash flow statement tracks the actual cash coming in and going out of the business during a specific timeframe, illustrating cash management rather than overall financial position. The statement of retained earnings summarizes changes in equity, showing how profits are retained or distributed over a period instead of presenting a momentary financial snapshot.