Final answer:
The document that summarizes the financial position of a nursing facility at a specific time is the balance sheet. It lists all assets and liabilities, providing a snapshot of the facility's net worth or equity.
Step-by-step explanation:
A document that summarizes the financial position of a nursing facility at a particular point in time is known as the balance sheet. The balance sheet is a fundamental accounting tool that provides a snapshot of what the facility owns and owes at a given moment. It lists all of the nursing facility's assets, such as cash on hand and equipment, as well as liabilities like loans or mortgages. The difference between total assets and total liabilities is known as the net worth or equity of the facility.
Just like a bank's balance sheet, which includes assets like cash held in vaults and loans made to customers, and liabilities such as deposits and borrowed funds, a nursing facility's balance sheet follows the same principles to determine its net worth, often referred to in this context as the entity's capital. Thus, for the question at hand, option 2, the balance sheet, is the correct answer as it reflects the financial position of the nursing facility.