Final answer:
The balance sheet is the financial statement that displays a business's financial position at a specific date, detailing assets, liabilities, and equity. It contrasts with the income statement and IRS Form 1040, which report income and tax information over a period and are not snapshots of financial status.
Step-by-step explanation:
The financial statement that shows the status of a business as of a specific date is the balance sheet. Unlike the income statement or profit and loss statement, which reflect a company's performance over a period of time, the balance sheet provides a snapshot of a company's financial position at a particular point in time. It lists the company's assets, liabilities, and owner's equity. The income statement shows revenue and expenses for a period, and while tax forms like the IRS Form 1040 are related to personal or corporate income tax liabilities, they are not used to depict a company's overall financial status at a single point in time.
A bank's balance sheet works similarly, detailing its own assets, liabilities, and bank capital, all of which determine the bank's net worth. In contrast, an individual's interaction with the IRS through forms like the 1040EZ strictly pertains to the annual responsibility of reporting personal income and calculating due taxes, which forms an aspect of fiscal policy from the government's perspective.