Which financial statement would you consult to compare current and noncurrent assets and liabilities across all government activities?

Which financial statement would you consult to compare current and noncurrent assets and liabilities across all government activities?

• A. Government-wide Statement of Net Position
• B. General Fund Balance Sheet
• C. Statement of Revenues, Expenditures, and Changes in Fund Balance
• D. Statement of Cash Flows

Answer: (A)

Government-wide financial statements provide the consolidated view of a government's assets and liabilities across all activities, shown on a full accrual basis. This makes it possible to compare current and noncurrent assets and liabilities for governmental and business-type activities in one place. The government-wide Statement of Net Position is the best source because it presents both current and noncurrent assets and liabilities for all activities and reports the net position, giving a complete snapshot of the government’s financial position. In contrast, the General Fund Balance Sheet is fund-specific and focuses on current resources, not noncurrent items across all activities. The fund-level Statement of Revenues, Expenditures, and Changes in Fund Balance concentrates on inflows and outflows by fund, not a cross-activities balance sheet. The Statement of Cash Flows shows cash movements, not the overall asset/liability snapshot across all activities.

Government-wide financial statements provide the consolidated view of a government's assets and liabilities across all activities, shown on a full accrual basis. This makes it possible to compare current and noncurrent assets and liabilities for governmental and business-type activities in one place.

The government-wide Statement of Net Position is the best source because it presents both current and noncurrent assets and liabilities for all activities and reports the net position, giving a complete snapshot of the government’s financial position. In contrast, the General Fund Balance Sheet is fund-specific and focuses on current resources, not noncurrent items across all activities. The fund-level Statement of Revenues, Expenditures, and Changes in Fund Balance concentrates on inflows and outflows by fund, not a cross-activities balance sheet. The Statement of Cash Flows shows cash movements, not the overall asset/liability snapshot across all activities.