Final answer:
The balance sheet is the financial statement that provides a snapshot of a company's financial position at a specific point in time, such as 31st Dec 2020, including assets, liabilities, and shareholders' equity.
Step-by-step explanation:
The financial statement that reflects the position of a business at a specific point in time, such as at 31st Dec 2020, is known as the balance sheet. This snapshot provides information on a company's assets, liabilities, and shareholders' equity. The assets part lists everything the company owns that has value, while the liabilities section outlines what the company owes. The difference between assets and liabilities is known as the shareholders' equity, which represents the ownership interest in the company. Unlike the income statement which shows performance over a period, the balance sheet captures financial information at a single moment in time, offering insights into the financial stability and liquidity of the business.