Final answer:
The balance sheet is the financial statement that reflects the accounting equation, representing a company's assets, liabilities, and shareholders' equity at a particular time.
Step-by-step explanation:
The financial statement which reflects the accounting equation is the balance sheet. The accounting equation is Assets = Liabilities + Owner's Equity. A balance sheet lists a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of the company's financial condition. Assets are economic resources like cash, inventory, and property. Liabilities represent debts owed by the company. The net worth or equity is the residual interest in the assets of the entity after deducting liabilities. This is why a bank's balance sheet displays its net worth as bank capital. Bank assets may include cash in vaults and deposits at the Federal Reserve, while liabilities include customer deposits and any debts.