Which of the following is not one of the three consolidated federal financial reports?

• A. Balance Sheet
• B. Statement of Net Cost
• C. Statement of Operations and Changes in Net Position
• D. Cash Flow Statement

Answer: (D)

In federal financial reporting, three statements capture the core picture: the Balance Sheet shows assets, liabilities, and the net position; the Statement of Net Cost presents the annual cost of operations and the net cost after financing; and the Statement of Changes in Net Position shows how the net position changes due to financing and other activities. A Cash Flow Statement is not one of these three consolidated reports, so it is not included among the main federal financial statements. That’s why the Cash Flow Statement is the option that is not part of the three consolidated reports.