In preparing the statement of activities, which type of information is primarily reported?

The statement of activities is a key component of the financial statements for governmental entities and is primarily focused on the changes in net position over time. This statement provides a comprehensive overview of how the government's financial position has shifted during the reporting period. It highlights revenues, expenditures, and other changes that contribute to the overall financial health of the government entity.

By focusing on changes in net position, the statement gives stakeholders a clearer understanding of how financial activities over the reporting period impact the overall equity of the government. This is essential for assessing the government's performance and fiscal sustainability.

Other categories, such as governmental liabilities, physical assets and infrastructure, or investment earnings and interests, may be covered in different sections of the financial reports but do not encapsulate the primary focus of the statement of activities, which is to track the dynamic changes in net position rather than static snapshots or detailed asset categorizations.