Which financial statement reflects transfers between governmental activities and business-type activities?

The government-wide statement of activities is designed to present a comprehensive overview of the government’s finances. It includes information that reflects the overall financial position and activities of the government as a whole, integrating both governmental activities and business-type activities.

This statement is particularly significant because it provides insights into how resources are allocated and transferred between different activities within the government. By presenting both types of activities together, it reveals the impacts of financial decisions and the interconnectedness of governmental operations. Transfers between governmental and business-type activities showcase the flow of resources, which may include potentially subsidized business operations or shared services, thereby allowing for a clearer understanding of the financial dynamics at play in managing public resources.

Furthermore, this statement incorporates all revenues and expenses, enabling stakeholders to assess whether the government is functioning efficiently and effectively in managing these activities. It allows for comparisons and evaluations of the financial health of the government, highlighting the importance of the relationships between different types of operations.

In contrast to the government-wide statement of activities, fund financial statements focus on individual funds and do not integrate information from both activity types at a broader level. The balance sheet serves to present a snapshot of assets, liabilities, and fund balances at a specific point in time, while the statement of revenues and expenditures details