What does the financial statement known as a Balance Sheet depict?

The Balance Sheet provides a financial snapshot of an organization at a specific point in time, detailing the company's assets, liabilities, and equity. This statement reveals what the organization owns (assets), what it owes (liabilities), and the owner's equity, which is the difference between the two.

Assets, which can be both current and non-current, include cash, accounts receivable, and property. Liabilities are obligations the company must fulfill, such as loans and accounts payable. The equity section represents the residual interest in the assets of the organization after deducting liabilities, essentially showing the net worth of the company.

This financial statement is crucial for understanding the financial health of an organization, enabling stakeholders to assess its short-term liquidity position and long-term solvency. In contrast, the other options do not accurately reflect the purpose of a Balance Sheet—profit margin pertains to income statements, claims records are not comprehensive of all financial data, and projections relate to future revenues rather than current financial standing.