What does a Balance Sheet primarily show?

A Balance Sheet primarily shows the financial position of a company at a specific date, detailing the company's assets, liabilities, and equity. This snapshot reveals what the company owns and owes at that moment in time, enabling stakeholders to gauge the net worth of the business by subtracting total liabilities from total assets.

While understanding profitability is essential for assessing a company's overall performance, that information is typically derived from the Income Statement rather than the Balance Sheet. Similarly, cash flow information is illustrated through the Cash Flow Statement, which tracks the movement of cash in and out of the company over a specific period. Lastly, the operations of a company are generally reflected in various reports that showcase the day-to-day activities and transactions, rather than being a focus of the Balance Sheet.

Thus, the correct answer unequivocally highlights the Balance Sheet's role as a crucial financial statement that provides a clear picture of a company's financial standing at a particular point in time.