The 2012 financial statements of the Internal Revenue Service are available at: http://www.gao.gov/assets/650/649881.pdf. Use these to answer

Question:

The 2012 financial statements of the Internal Revenue Service are available at: http://www.gao.gov/assets/650/649881.pdf. Use these to answer the following questions.

a. Statement of Net Costs

1. What are the IRS's two largest programs based on net cost?

b. Statement of Changes in Net Position

2. What is the largest source of financing for the activities of the IRS?

c. Statement of Custodial Activity

3. What activity is reported in this statement? (i.e., what is the IRS doing?)

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...