Which of the following would not be part of the three components in Federal accounting?

• A. Assets
• B. Revenues
• C. Net Position
• D. Liabilities

Answer: (B)

Federal accounting uses a balance sheet-like structure with three primary elements: assets, liabilities, and net position. Revenues are not a component of that structure. They are inflows from government operations that increase net position, but they are shown in the statements that report changes in net position, not as a separate balance-sheet item. For example, assets (like cash) and liabilities (like obligations) appear on the balance sheet, while revenues affect the net position over the period through the statements of changes in net position. Therefore, revenues would not be included among the three balance-sheet components.