What is one of the three broad components of the statement of net position?

The correct choice, unrestricted net position, is one of the three broad components of the statement of net position, which provides a snapshot of a governmental or nonprofit organization's financial position. Unrestricted net position represents the portion of net position that is not restricted by any external constraints or liabilities. This allows the organization to utilize these resources for any lawful purpose, contributing to its overall flexibility in financial decision-making.

Understanding this component is crucial because it reflects the resources available for general use, unlike the restricted net position, which is set aside for specified purposes, or the investment in capital assets, which pertains to the net position related to property and equipment that the organization owns. Recognizing these distinctions helps stakeholders gauge the financial health and operational capabilities of an entity.