Choice "A" is correct. Governmental funds must present their statement of financial position in a balance sheet rather than net position format. A balance sheet format sets assets and deferred outflows of resources equal to Liabilities and deferred inflows of resources plus fund balanceChoice "c" is incorrect. Governmental funds must present their statement of financial position in a balance sheet rather than net position format. The proposed solution attempts to describe a net position format, however, the inflows are inappropriately coupled with assets instead of liabilities and the outflows are inappropriately coupled with liabilities instead of assets.Choice "b" is incorrect. Governmental funds must present their statement of financial position in a balance sheet rather than net position format. The proposed solution attempts to describe a net position format, however, the inflows are inappropriately coupled with assets instead of liabilities and the outflows are inappropriately coupled with liabilities instead of assets. In addition a net position format would produce net position, not fund balance.Choice "d" is incorrect. Governmental funds must present their statement of financial position in a balance sheet rather than net position format. The proposed solution describes a net position format. A net position format would produce net position, not fund balance.