Which of the following statements concerning interfund transfers is true?

Interfund transfers are reported in the statement of revenues, expenditures, and changes in fund balance when transfers occur among governmental funds.

Interfund transfers are reported in the statement of activities when transfers occur among governmental funds.

Interfund transfers are reported in the statement of revenues, expenditures, and changes in fund balance and the statement of activities when transfers occur among governmental funds.

Interfund transfers are reported as internal balances on the statement of net position when activity occurs among governmental activities and business-type activities.