Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (224402)	3/16/2005 3:38:18 PM
From: i-node	Respond to of 1584293

>> And its more than what's going out. Where is the surplus going? There is no "operating surplus"; there is an excess of cash receipts over cash expenditures, which leaves a cash balance. That cash balance is being invested at about 3% (mostly in US Treasury securities) which is how the trust earns money. Any substantial operation must report on the accrual basis of accounting. Accrual basis accounting uses the term "surplus" to refer to the excess of assets over liabilities. Were SS reporting under accrual basis accounting, there would be an excess of LIABILITIES over ASSETS, amounting to TRILLIONS of dollars. There is no "surplus" by any logical definition. There is a "surplus" only if you look at Social Security on the Cash Receipts and Disbursements method of accounting. No pension trust in the nation other than SS is allowed to use the Cash method. Furthermore, no substantial business in the nation is allowed to report on an OCBOA other than accrual for SEC or Federal Tax purposes. The point being that SSA's books are "cooked", for those who don't have a clue about accounting.