What characteristic does a balance sheet display?

A balance sheet provides a snapshot of a company's financial position at a specific point in time. It displays the company's assets, liabilities, and equity, which reflects the resources it controls and the obligations it has to creditors. The characteristic highlighted in option C, which focuses on a company's collateral and liquidity, is essential because collateral represents the assets that a company can offer to secure loans, while liquidity refers to the ability of the company to meet its short-term obligations.

Assets are divided into current and non-current, which helps assess liquidity — current assets can quickly be converted to cash to meet short-term needs, and non-current assets might serve as collateral. This information is crucial for stakeholders such as lenders and investors as they analyze the financial health and operational effectiveness of the company. Therefore, understanding a company's collateral and liquidity directly ties into the purpose of a balance sheet, making option C the correct choice for describing a characteristic displayed on this financial statement.