Which financial statement shows assets and liabilities?

• A. Cash Flow Statement
• B. Income Statement
• C. Balance Sheets
• D. Profit and Loss Account

Answer: (C)

The balance sheet shows assets and liabilities. It provides a snapshot of the business’s financial position at a specific moment, listing what it owns (assets) and what it owes (liabilities) along with the owners’ equity. This contrasts with the cash flow statement, which tracks cash movements over a period, and the income statement (profit and loss account), which records revenues and expenses to show profit over a period. So, for seeing assets and liabilities, the balance sheet is the one to use.