Which two statements comprise the government-wide financial statements under GASB?

Which two statements comprise the government-wide financial statements under GASB?

• A. Balance sheet and income statement.
• B. Statement of net position and statement of activities.
• C. Cash flow statement only.
• D. Statement of changes in fiduciary net position.

Answer: (B)

Government-wide financial reporting presents the government as a whole on an economic, long-term basis using accrual accounting. The two statements that make up these government-wide financial statements are the Statement of Net Position and the Statement of Activities. The Statement of Net Position shows assets, liabilities, and net position (including deferred outflows and inflows of resources) at a point in time, giving a snapshot of the government’s overall financial position. The Statement of Activities shows how that net position changed over the period by detailing revenues and expenses, including program revenues and the net cost of each function. Together, they convey the government’s sustainability and overall financial health beyond individual funds.

Government-wide financial reporting presents the government as a whole on an economic, long-term basis using accrual accounting. The two statements that make up these government-wide financial statements are the Statement of Net Position and the Statement of Activities. The Statement of Net Position shows assets, liabilities, and net position (including deferred outflows and inflows of resources) at a point in time, giving a snapshot of the government’s overall financial position. The Statement of Activities shows how that net position changed over the period by detailing revenues and expenses, including program revenues and the net cost of each function. Together, they convey the government’s sustainability and overall financial health beyond individual funds.