A balance sheet shows which of the following?

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A balance sheet is a financial statement that provides a snapshot of an organization's financial position at a specific point in time. It is structured around the accounting equation: Assets = Liabilities + Equity. This equation highlights that all the resources owned by the organization (assets) are financed either by borrowing (liabilities) or by using the owners' funds (equity).

The inclusion of assets with liabilities and equity reflects the comprehensive nature of the balance sheet, demonstrating how the assets are supported by the claims against them. This structure allows stakeholders to assess the financial health, stability, and solvency of the organization.

While the other options may include elements related to finance, they do not fully capture the essence of what a balance sheet represents. For instance, the bank statement is simply a record of transactions and balances held at a bank, which does not provide a complete view of a company’s financial standing. Similarly, focusing on just liabilities and equity or on specific funds does not encompass the totality of an organization's assets. Therefore, the answer accurately describes the balance sheet's comprehensive nature by including all three components: assets, liabilities, and equity.

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