Which type of financial statement provides a snapshot of an organization’s assets and liabilities?

The Balance Sheet is the financial statement that offers a snapshot of an organization’s assets and liabilities at a specific point in time. It is structured to present the financial position by showing what the organization owns (assets) and what it owes (liabilities). The Balance Sheet also highlights the equity of the organization, which represents the residual interest in the assets after deducting liabilities. This comprehensive view allows stakeholders, including community managers, to assess the financial health and stability of the organization.

In contrast, the Income Statement focuses on the performance over a period, detailing revenues and expenses to show profit or loss rather than the overall financial position. The Cash Flow Statement outlines how cash moves in and out of the organization, emphasizing liquidity rather than assets and liabilities. The Fund Balance Statement, commonly associated with governmental or non-profit organizations, details the resources available but does not provide a complete view of the organization’s financial position like the Balance Sheet does. Hence, the Balance Sheet is crucial for understanding an organization's financial stability at a given moment.