GASB standards require that governmental fund financial statements include which of the following?

• A. Statement of Net Position.
• B. Statement of Cash Flows.
• C. Balance Sheet.
• D. Statement of Activities.

Answer: (C)

In GASB, governmental fund financial statements focus on current financial resources. The primary statement for these funds is the Balance Sheet, which presents assets, liabilities, and fund balances. This format reflects the modified accrual basis and emphasizes resources available to finance near-term expenditures.

By contrast, the government-wide financial statements use the Statement of Net Position and the Statement of Activities, which show the overall economic position and changes in net position, not restricted to individual funds. A cash flow statement is not a required part of governmental fund statements, so the Balance Sheet is the correct inclusion for governmental fund presentations.