Difference between accrual-basis accounting and cash-basis


On numerous occasions, proposals have surfaced to put the federal government on the accruals basis of accounting. This is no small issue. 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.-What is the difference between accrual-basis accounting and cash-basis accounting?-why would politicians prefer the cash-basis? if you had to explain why the federal government should adopt the accrual-basis of accounting what would you say?

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Accounting Basics: Difference between accrual-basis accounting and cash-basis
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