Professional in Human Resources (PHR) Practice Exam

A Balance Sheet provides a statement of financial position at a particular time. This financial statement is a snapshot of an organization's assets, liabilities, and equity at a specific moment, allowing stakeholders to assess the financial health and stability of the organization. By listing what the company owns and owes, a Balance Sheet enables stakeholders to evaluate liquidity and overall financial condition, which are crucial for making informed business decisions.

In contrast, the other options discuss different financial concepts. A summary of income and expenses refers to an Income Statement, which outlines the revenue and costs over a period, not at a single point in time. A detailed action plan for outcomes does not pertain to financial statements but rather to strategic planning. Assessment of customer satisfaction relates to customer relationship management and is not captured within a financial overview. Understanding the specific purpose and components of a Balance Sheet helps clarify its role in financial reporting and analysis.