What document is typically used to evaluate a company's financial position on a specific date?

The balance sheet is the document used to evaluate a company's financial position at a specific point in time. It provides a snapshot of the company’s assets, liabilities, and equity as of that date. This information is crucial for stakeholders, as it illustrates what the company owns and owes, thus giving insight into its financial health and stability.

The balance sheet is structured in a way that the total assets must equal the sum of total liabilities and equity, adhering to the accounting equation: Assets = Liabilities + Equity. This fundamental relationship helps assess the company's capital structure and financial leverage.

In contrast, the profit and loss statement, also known as the income statement, measures a company’s performance over a period, showing revenues and expenses and resulting in net income or loss. The statement of cash flows details the inflows and outflows of cash over a specific timeframe, while the annual report encompasses various company operations and financial performance, but does not specifically focus on the financial position at a single point in time like the balance sheet does.