What is included in a company's balance sheet?

A company's balance sheet is a financial statement that provides a snapshot of its financial position at a specific point in time. It is structured around the accounting equation: Assets = Liabilities + Owner's Equity. This format reveals how a company's resources (assets) are financed either through debt (liabilities) or by the owners' investments (owner's equity).

Assets encompass everything the company owns that has value, including cash, accounts receivable, inventory, and fixed assets like machinery or real estate. Liabilities represent what the company owes to outside parties, such as loans, accounts payable, and other obligations. Owner's equity indicates the residual interest in the assets of the company after deducting liabilities, reflecting the net worth of the business.

In contrast, cash flow is reported in the cash flow statement, while income and expenses, as well as revenue and net profit, appear in the income statement. These other financial statements serve different purposes and provide insights into the company's performance and cash movement over a period of time rather than its financial position at a single moment. Thus, the balance sheet is distinct for focusing specifically on assets, liabilities, and owner's equity, making option B the correct answer.