What is the GASB formula for the Balance Sheet?

The GASB formula for the Balance Sheet is accurately represented by the equation that states that assets plus liabilities equal net position. This reflects the fundamental accounting equation, which is central to the reporting standards established by the Governmental Accounting Standards Board (GASB).

In governmental accounting, the net position represents the difference between what a government owns (assets) and what it owes (liabilities). By rearranging the equation, you can see how resources are financed: the entities must either utilize their own resources (assets) or rely on liabilities. When you sum assets and liabilities together, you're essentially describing the total resources available to the government and how they are funded. This formula is crucial for understanding the financial position of a government entity as it allows for clear insights into the balance between the resources at its disposal and its obligations.

The other answer choices do not accurately reflect the foundational accounting principles established by GASB. For example, stating that net position equals assets plus liabilities suggests a misunderstanding of how net position is derived. The inclusion of fund balance as both a component and a subtractive element in other options complicates the fundamental equation without aligning with GASB standards.