Which financial statement provides a snapshot of a firm's financial position at a specific point in time?

The balance sheet provides a snapshot of a firm's financial position at a specific point in time. It summarizes the company's assets, liabilities, and shareholders' equity, reflecting the financial standing as of a particular date. This statement allows stakeholders to assess what the company owns and owes, thus giving insight into the firm’s net worth and overall financial health at that moment.

In contrast, the income statement focuses on a company’s performance over a period, detailing revenues and expenses, ultimately showing profitability. The cash flow statement records the flow of cash in and out of the business over a timeframe, helping to understand liquidity and cash management. The statement of shareholders' equity outlines changes in equity, such as issuance of stock and dividends, over a period rather than providing a static view at a point in time.