D) statement of cash flows. The governmental funds (e.g., general fund, special revenue fund, capital projects fund) are reported using the modified accrual basis and current financial resources measurement focus. Required financial statements for governmental funds include: Balance Sheet Statement of Revenues, Expenditures, and Changes in Fund Balances There is no requirement for a statement of cash flows for governmental funds. The statement of cash flows is only required for proprietary funds (e.g., enterprise and internal service funds) and is prepared using the direct method. Relevant Reference: GASB Statement No. 34 -- Basic Financial Statements GASB Codification Section 2200 GFOA Governmental Fund Reporting Guidelines Answer : D. statement of cash flows

A) the balance sheet.

B) the operating statement.

C) expenditures and changes in fund balance.