Which financial document provides a snapshot of a company's solvency?

The balance sheet is the financial document that provides a snapshot of a company's solvency at a specific point in time. It presents a detailed view of the company's assets, liabilities, and equity, allowing stakeholders to assess the company's financial health and stability. Solvency is primarily concerned with whether a company can meet its long-term financial obligations, which is evaluated through the comparison of total assets to total liabilities found on the balance sheet.

The income statement, while crucial for understanding a company's performance over a period (showing revenues and expenses), does not provide the necessary details regarding a company's overall financial position or its ability to pay long-term debts. The cash flow statement focuses on cash movement in and out of the company, providing insights into liquidity but not solvency. The trial balance, on the other hand, is an internal report that lists all account balances and ensures that total debits equal total credits, but it does not serve as a financial document that evaluates solvency. Thus, the balance sheet is the definitive financial statement for assessing a company's solvency.