Which financial statement summarizes the assets, liabilities, and owner's equity of an organization?

The balance sheet is the financial statement that provides a comprehensive summary of an organization's assets, liabilities, and owner's equity at a specific point in time. This statement is crucial as it illustrates the financial position of the organization and helps stakeholders understand what the organization owns and owes.

Assets are resources owned by the organization—such as cash, inventory, and property—while liabilities are the obligations it owes to creditors, such as loans and accounts payable. Owner's equity represents the residual interest in the assets after deducting liabilities, often reflecting the initial investment owners have made as well as reinvested earnings.

In contrast, the income statement focuses on the organization’s revenues and expenses over a period of time, showing how much profit or loss was generated. The cash flow statement details the flow of cash in and out of the organization, highlighting its liquidity over time. The retained earnings statement outlines the changes in retained earnings for a period, but it does not provide a full overview of the organization’s financial position as the balance sheet does. Hence, the balance sheet is essential for evaluating the overall financial health of an entity.