What does a balance sheet represent?

A balance sheet represents a snapshot of a company's financial position at a specific point in time. It provides a summary of the company’s assets, liabilities, and shareholders' equity, illustrating what the company owns and owes at that moment. This snapshot is crucial for stakeholders, including investors and creditors, as it enables them to assess the company's liquidity and financial stability.

The other options focus on different aspects of financial reporting. A summary of cash flows pertains to the cash inflows and outflows over a specific period, highlighting how cash is generated and spent. A detailed list of upcoming expenses would relate to budgeting and forecasting, while a historical record of all transactions would refer to the overall accounting records rather than a structured presentation of the company's current financial state like the balance sheet does. Each of these focuses on different financial concepts and periods, making option A the correct representation of what a balance sheet signifies.