Which financial statement includes both governmental and business-type activities?

The Statement of Net Position includes both governmental and business-type activities, making it the correct choice. This comprehensive financial statement is designed to provide a snapshot of the overall financial position of a government entity at a specific point in time.

In this statement, both sets of activities are presented in a unified format, detailing assets, liabilities, and net position for each type of activity. Governmental activities typically encompass services such as public safety, education, and infrastructure, while business-type activities are operations that are similar to private sector businesses, like water utilities or public transportation systems. By presenting both types of activities in one statement, stakeholders can gain a complete overview of the government’s financial health and how different operations contribute to the overall financial position.

Other choices do not combine these activities in the same way. For example, the Statement of Cash Flows primarily focuses on cash inflows and outflows without showing a full picture of both governmental and business-type activities’ financial positions. Fund Financial Statements are typically more segmented, focusing on specific government funds rather than integrating all activities. The General Fund Budget Summary is mainly concerned with budget data for the general fund and does not encompass the entire range of governmental and business-type activities.