Choice "B" correct. Fiduciary funds must present their statement of financial position in a net position format. The solution describes a net position format. Resources owned by the entity (assets and deferred outflows) minus resources owed by the entity (liabilities and deferred inflows) equals net position. Choice "c" incorrect. Fiduciary funds must present their statement of financial position in a 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 "a" incorrect. Fiduciary funds must present their statement of financial position in a 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 not produce fund balance.Choice "d" is incorrect. Fiduciary funds must present their statement of financial position in a net position rather than a balance sheet format. A balance sheet format sets assets and deferred outflows of resources equal to liabilities and deferred inflows of resources plus fund balance. A net position format shows resources owned by the entity (assets and deferred outflows) minus resources owed by the entity (liabilities and deferred inflows) equal to net position.