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Diane Publishing Books
Understanding Similarities and Differences Between Accrual and Cash Deficits
Susan J. Irving (ed); David M. Walker (pf)
Two key measures that have been used as indicators of the govít. annual fiscal condition are the unified budget deficit measured on a cash basis & the net operating cost measured on an accrual basis for financial statement purposes. These 2 measures each serve different purposes, they present complementary info. & can be used together to provide a more comprehensive picture of the govít. fiscal condition today & over time. This primer will improve understanding of the accrual deficit by describing: how it is similar & different from the more commonly reported cash budget deficit; the key drivers behind changes in accrual deficits relative to cash budget deficits; & how the 2 measures complement each other & give a fuller picture of the govít. overall fiscal condition. Illus.
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