A(n) reports the firm's financial condition on a specific date.Need help? Review these concept resources.

The term you are referring to is likely a Balance Sheet. A balance sheet provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time. It's one of the three primary financial statements used by businesses, alongside the income statement and cash flow statement.

Key Components of a Balance Sheet:

1. Assets: Resources owned by the firm, which can be classified into:

   • Current Assets: Cash and other assets expected to be liquidated or used within a year (e.g., inventory, accounts receivable).
   • Non-current Assets: Assets that will last longer than a year (e.g., property, plant, equipment).

2. Liabilities: Obligations owed by the firm, which also can be divided into:

   • Current Liabilities: Debts or obligations due within one year (e.g., accounts payable, short-term debt).
   • Long-term Liabilities: Obligations due after one year (e.g., long-term loans, bonds payable).

3. Shareholders' Equity: The residual interest in the assets of the firm after deducting liabilities. It represents the owners' claim on the assets.

Importance of a Balance Sheet:

A balance sheet is crucial for assessing the financial health of a firm, providing insights into its liquidity, financial stability, and capital structure. Investors, creditors, and management use this report to make informed decisions regarding investment, lending, and overall business strategies.

In summary, the balance sheet is an essential tool in understanding a company's financial status at a specific point in time.