What does a balance sheet primarily show?

A balance sheet primarily shows the financial condition of a business at a specific point in time. It provides a snapshot of what the company owns (assets), what it owes (liabilities), and the owner's equity at that particular date. This allows stakeholders to assess the company's financial stability and liquidity, understanding how resources are allocated and the overall health of its financial position.

The other options—profit over time, cash flow projections, and revenue streams—focus on different aspects of financial performance and do not capture the immediate financial circumstance as the balance sheet does. For instance, profit over time is typically shown on an income statement, which tracks earnings over a period rather than at a single date. Cash flow projections deal with anticipated future inflows and outflows of cash, while revenue streams analyze sources of income but again do not provide a static view of financial health as of a specific day. Therefore, the balance sheet's primary function is to reflect the financial situation on a particular date, making the choice of "financial condition on a specific date" accurate.