What type of resources and obligations appear on the Balance Sheet for Governmental Funds?

The correct answer highlights that the Balance Sheet for Governmental Funds includes current financial resources and obligations. Governmental funds are primarily focused on the flow of financial resources within a short-term time frame, typically a fiscal year. This is consistent with the modified accrual basis of accounting used for these funds, which recognizes revenues when they are measurable and available, and expenditures when they are incurred.

Current financial resources refer to cash, receivables, and other assets that can be converted into cash within the fiscal year, while obligations include liabilities that the fund is required to settle in the near term, such as accounts payable and other short-term obligations. The inclusion of these elements provides a clear picture of the fund's short-term financial health and ability to meet its immediate obligations.

In contrast, other options do not accurately reflect the nature of the governmental funds' balance sheet. Long-term financial commitments do not appear because governmental funds do not focus on long-term assets and liabilities like capital funds do. Future cash flows are not presented in a balance sheet format, and while asset holdings are indeed part of the balance sheet, it is not limited to assets alone; it also includes related current liabilities. Hence, recognizing both current resources and obligations provides a comprehensive view of the fund