A Government's Statement of Revenues,Expenditures,and Changes in Fund Balances Reflected

A government's Statement of Revenues,Expenditures,and Changes in Fund Balances reflected expenditures for debt service in the amount of $12,000,000,including $7,000,000 for interest.It also reflected proceeds of bonds in the amount of $4,000,000.No interest accruals were involved.When moving from the changes in fund balances reported for the governmental funds to the change in net assets for governmental activities,the net change would be:

A) $3,000,000 decrease
B) $1,000,000 decrease
C) $3,000,000 increase
D) $1,000,000 increase