A State's Governmental Funds Balance Sheet at Fiscal Year-End Reports

Multiple Choice

A state's governmental funds balance sheet at fiscal year-end reports total liabilities of $20 billion. The state's government-wide statement of net position at fiscal year-end reports total liabilities of governmental activities of $200 billion. What is likely to be the major reason for the large discrepancy between these two numbers?

A) The government-wide statement includes internal service fund liabilities while the governmental funds statement does not.
B) The government-wide statement reports amounts due to other governments and agencies while the governmental funds statement does not.
C) The government-wide statement reports bond and pension liabilities of governmental funds while the governmental funds statement does not.
D) The government-wide statement reports deferred outflows from bond refundings while the governmental funds statement does not.