Why would politicians prefer the cash basis over the accrual basis? The accrual basis of accounting is necessary in financial accounting. The separation between financial accounting and managerial accounting is clear and is generally used in accounting. GAAP (Generally Accepted Accounting Principles) require the statement to ensure information provide on financial statements, it should be both useable and understandable to creditors, investors, and shareholders. Without the guidelines established by GAPP the accounting standards would not be consistent, corporations and other business entities could report transactions however they want. The politicians would prefer the cash basis accounting over accrual because, they would be able to borrow and spend money however they pleased. There would be no explanation on where the money went on cash basis since it is not as detailed as accrual basis accounting.
Weygandt, J.J. (2008). Financial Accounting (6th ed.). Hoboken, NJ: John Wiley & Sons.