Final answer:
The reconciliation of governmental fund financial statements to government-wide statements can be found in both the governmental fund balance sheet and the government-wide statement of activities
Step-by-step explanation:
The reconciliation of governmental fund financial statements (FS) to government-wide statements is an important aspect of governmental accounting. To provide the answer to the student's question: Reconciliation of governmental fund financial statements to government-wide financial statements can be found in: C) Both A and B.
This means that the reconciliation is present on the governmental fund balance sheet, as well as in the government-wide statement of activities. The reconciliation is meant to explain the differences between the fund financial statements and government-wide financial statements, which arise due to the different accounting methods used.