Your response should be 2-3 paragraphs and incorporate at least one outside reference. You will NOT be able to see others responses until you make the initial posting. You are then encouraged to engage in the discussion as frequently as possible. Provide citations.
book used for this class: Accounting Tools for Business Decisions with WileyPLus Edition: 7th Author: Kimmel ISBN:9781119598381
On numerous occasions, proposals have surfaced to put the federal government on the accrual basis of accounting. This is no small issue because if this basis were used, it would mean that billions in unrecorded liabilities would have to be booked and the federal deficit would increase substantially.
(a) What is the difference between accrual-basis accounting and cash-basis accounting?
(b) Comment on why politicians prefer a cash-basis accounting system over an accrual-basis system.