Review the government-wide statements as presented in Table 17–1 of the text.
1. What was the amount of the government’s deficit for the year? What was the amount of its net position?
2. What three departments incurred the largest amount of expenses (net)?
3. What was the government’s main source of revenues?
4. The government’s balance sheet excludes a significant amount of both assets and liabilities. What government owned assets are omitted from the balance sheet? What liabilities are omitted?
5. Suppose that the federal government would change the paydays of certain employees from the last day of each month to the first day of the next (a classic means of decreasing budgetary expenditures for a particular year).
Would that gimmick reduce the net cost of operations as reported in the statement of net cost?
6. The statement of net cost indicates the gross cost of the Social Security program to be $782.5 billion. Where in the financial statements is it most likely that the major amount of related revenues (i.e., payroll taxes) are reported? What justification is there for not reporting these revenues as earned revenues of the Social Security program?

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