Which financial statement provides an overview of a client’s assets and liabilities?

The balance sheet serves as a key financial statement that provides a comprehensive overview of a client's assets and liabilities at a specific point in time. It presents a clear picture of what the client owns (assets), such as cash, investments, real estate, and other properties, alongside what they owe (liabilities), which may include loans, mortgages, and other debts. This snapshot allows both the client and the financial planner to assess the individual's net worth by calculating the difference between total assets and total liabilities.

In contrast, the income statement focuses on the revenues and expenses over a period, highlighting the client's profitability rather than their overall financial position. The cash flow statement tracks the movement of cash in and out, centering on liquidity rather than asset and liability standing. The investment statement details performance and valuation of investments, but does not encompass the full scope of liabilities or assets as required to give an overview of the client's financial situation. Hence, the balance sheet is the appropriate choice for understanding a client's complete financial standing.