What primary function does the Balance Sheet serve?

The Balance Sheet serves as a key financial statement that provides a snapshot of a company's financial position at a specific point in time. Its primary function is to summarize the company's assets, liabilities, and equity. This summary allows stakeholders to assess the financial health and stability of the organization. By presenting the total assets alongside total liabilities and shareholders' equity, the Balance Sheet helps in understanding how resources are financed, whether through debt or equity, and whether the company has sufficient resources to cover its obligations.

The other options, while relevant to financial reporting, do not accurately describe the primary function of the Balance Sheet. Profitability over time is reflected in the Income Statement, cash movement is detailed in the Cash Flow Statement, and operational expenses are recorded in the Income Statement as well. Thus, the role of summarizing assets and liabilities is distinct and essential to the financial reporting framework.