Final answer:
The balance sheet is the financial statement that provides information about a person's or business's financial condition at a specific point in time by listing assets, liabilities, and net worth. Option b is the correct answer.
Step-by-step explanation:
When evaluating a person's or a business's financial condition at a specific point in time, the correct financial statement to consider is the balance sheet. The balance sheet is a snapshot that displays what a person or company owns (assets) and owes (liabilities), as well as the value of their net worth or equity at that moment. It is different from an income statement, which shows how much revenue was earned and expenses were incurred over a period of time. Similarly, a cash flow statement reports the cash inflows and outflows during a period, spotlighting the liquidity of the entity in question. Finally, a budget report outlines the expected financial plans and results for future periods, but doesn't provide the actual financial position as of a certain date like the balance sheet does.
A bank's balance sheet similarly lists down all of its assets like cash in vaults and loans made to customers, against its liabilities, which may include customer deposits and debts. The difference between a bank's total assets and total liabilities is known as the bank's capital or net worth. Ultimately, it's the balance sheet that gives the most direct insight into the financial health of an entity at any given moment.
Therefore, the answer to the student's question is b) Balance Sheet, which provides information about a person's financial condition at a specific point in time.