Final answer:
A CAFR should include Introductory, Financial, and Statistical sections as recommended by the GASB to provide complete information on governmental activities and financial position.The correct option is B.
Step-by-step explanation:
A Comprehensive Annual Financial Report (CAFR) prepared in conformity with Governmental Accounting Standards Board (GASB) recommendations should include an Introductory section, a Financial section, and a Statistical section. These sections cover important aspects like the transmittal letter, management's discussion and analysis (MD&A), basic financial statements, required supplementary information (other than MD&A), and an array of statistical information that provides a broader context of the government's activities and financial position over time.