Which are government-wide financial statements required by GASB standards?

• A. Balance sheet and income statement.
• B. Cash flow statement and fiduciary net position.
• C. Statement of net position and statement of activities.
• D. Financial position statement and revenues and expenditures.

Answer: (C)

GASB requires government-wide financial statements that present the government as a whole, focusing on its overall financial position and how that position changes over time, using accrual accounting. The two statements that accomplish this are the Statement of Net Position and the Statement of Activities. The Statement of Net Position functions like a balance sheet for the government, showing assets, liabilities, and net position at a point in time. The Statement of Activities mirrors an income statement, detailing expenses, program revenues, and the changes in net position over a period. These statements provide a broad view of the government’s financial health, including both governmental and business-type activities, while fiduciary activities are reported separately and not in the government-wide statements. The other options use terms aligned with private-sector reporting or fund-level reporting, which GASB reports do not use for government-wide statements.