Master the Florida Building Contractor Biz & Finance Exam 2025 – Build Your Success!

A balance sheet primarily displays a company's financial position at a specific point in time by outlining its liabilities, assets, and net worth (equity).

Assets represent what the company owns, such as cash, inventory, and property. Liabilities signify what the company owes, including loans and accounts payable. The net worth, also known as shareholders’ equity, is calculated by subtracting total liabilities from total assets, indicating the value that remains for the owners after debts are settled. The balance sheet provides a snapshot of financial health, helping stakeholders understand the resources available to the company and its obligations.

In contrast, the other options refer to different financial statements. The income statement tracks income and expenses over a period, showcasing profitability. Projected revenue and expenses relate to budgeting and forecasting, providing future expectations rather than a current financial position. Cash flow statements detail the cash inflows and outflows from operating activities, focusing on cash management rather than the overall financial structure.