Final answer:
The Net Position for a federal government entity is composed of both liabilities and equity. The cumulative results of operations are included in the equity section of the net position.
Step-by-step explanation:
The Net Position for a federal government entity is composed of both liabilities and equity.
Liabilities are what the entity owes to others, while equity represents the residual interest in the assets after deducting liabilities. The cumulative results of operations are included in the equity section of the net position.
Therefore, the correct answer is D) Both A and C.