Which financial statement provides a snapshot of an organization’s financial position at a specific time?

Prepare for the Western Governors University ACCT5201 D250 Governmental and Nonprofit Accounting Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The statement that provides a snapshot of an organization's financial position at a specific time is the statement of financial position. This financial statement is also commonly referred to as the balance sheet. It presents the organization's assets, liabilities, and net assets (or equity) as of a particular date, allowing stakeholders to assess the financial health and structure of the organization at that moment in time.

By listing resources (assets) and obligations (liabilities), along with the residual interest of the owners (net assets), the statement of financial position allows users to evaluate liquidity, financial stability, and the overall fiscal situation of the entity. It plays a crucial role in providing insights into how well the organization can meet its financial obligations and fund future activities.

In contrast, the other financial statements serve different purposes. For example, the statement of activities focuses on the revenues and expenses over a period, showing how well the organization performed financially. The cash flow statement details the inflows and outflows of cash during a specific period, which is vital for understanding liquidity but does not capture financial position at a point in time. Similarly, the statement of revenues and expenses lists income generated and expenses incurred over a period, but does not present a snapshot of financial position.

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