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    rubystensrud's Avatar
    rubystensrud Posts: 13, Reputation: 1
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    #1

    Feb 27, 2010, 02:11 PM
    Politicians prefer cash over accrual basis method
    I have two sources of why politicians prefer cash basisover accrual basis metod for accounting, but they are frompoliticians view points. Are tere any veiwpoints from citizens? I was nable to find. I don't need to know, but curious.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Feb 28, 2010, 01:50 AM

    Citizens? Exactly how many citizens do you think have any clue at all on what an accrued basis is? You would only find opinions from accounting people. I imagine the accounting people all prefer accrued basis for the most part -- if for no other reason than if you really, really believe in a cash basis, I doubt you'd end up with a very good feel for the accrued basis and therefore end up as an accountant.

    The other important point is for what? For books, taxes? I'm sure politicians would feel differently about taxes than for book. Even for book, depends on the company. Even small companies I see the point of accrued basis, but for certain companies I see where cash works better. So there's too many "what if's" in it.

    I'm also sure that part of their "view" is entirely political instead of being what they honestly believe. I have actually never heard of any such thing.
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