Which document is essential for understanding a company's cash position at a specific point in time?

The Balance Sheet is essential for understanding a company's cash position at a specific point in time because it provides a snapshot of the company’s assets, liabilities, and equity. Specifically, the Balance Sheet includes the cash and cash equivalents listed under assets, allowing stakeholders to see how much liquid cash is available to the company at that moment. This document is crucial for assessing financial health and liquidity since it summarizes the company's resources and obligations, giving insight into its overall cash position.

While the Cash Flow Statement also deals with cash, it reflects the inflows and outflows of cash over a period, rather than presenting a static picture at a particular moment. The Profit and Loss Statement focuses on revenues and expenses, providing insights into profitability but not directly showing cash availability. The Expense Report details specific expenditures, but it does not encompass the entirety of cash assets or liabilities. Thus, the Balance Sheet is the most relevant document for determining a company’s cash position at a certain time.