Which financial statement provides a company's net worth?

The balance sheet is the financial statement that provides a company's net worth, which is also referred to as shareholders' equity or owner's equity. The balance sheet summarizes a company's financial position at a specific point in time by listing its assets, liabilities, and equity.

In the balance sheet, assets represent everything the company owns, liabilities indicate what the company owes to others, and equity reflects the residual interest in the assets after deducting liabilities. The net worth can be calculated by subtracting total liabilities from total assets, resulting in the equity that belongs to the owners or shareholders of the company.

This clarity and structured format make the balance sheet the essential document to assess a company’s net worth, differentiating it from other choices like the general ledger, which is a comprehensive record of all transactions but does not present net worth succinctly. Similarly, an assets and liabilities statement may highlight those specific figures, but it does not provide the context of equity directly. A net worth statement, while it might imply a summary of net worth, is not a standard financial statement used in traditional accounting practice.